To link to the entire object, paste this link in email, IM or documentTo embed the entire object, paste this HTML in websiteTo link to this page, paste this link in email, IM or documentTo embed this page, paste this HTML in website

Comprehensive annual financial report of the University of North Carolina at Chapel Hill

Comprehensive annual financial report of the University of North Carolina at Chapel Hill

The University of North Carolina at Chapel Hill
❉✐❜ ❢ ❥ ✲ ❖
✉✐ ❉❜
❥ ❜ ❥ ❞❜ ❢❜
❋ ❡❢❡ ❑✈ ❢ ✹✶✲ ✸✶✶✶
C o m p r e h e n s i v e A n n u a l F i n a n c i a l R e p o r t
❇ ❉ ✉❥✉✈❢ ✉ ❏ ✉❥✉✈✉❥ ❣ ✐❢  ❥✇❢
❥✉! ❣ ❖
✉✐ ❉❜
❥ ❜ ❚! ✉❢# ❜ ❡ ❜ ❞ # ❢ ✉ ✈ ❥✉ ❣ ✉✐❢ ❚✉❜✉❢ ❣ ❖
✉✐ ❉❜
❥ ❜ ✸✶✶✶
✐❢  ❥✇❢
❥✉! ❣ ❖
✉✐ ❉❜
❥ ❜ ❜✉ ❉✐❜ ❢ ❥
University Mission
The University of North Carolina at Chapel Hill has been
built by the people of the State and has existed for two
centuries as the nation’s first state university. Through its
excellent undergraduate programs, it has provided higher
education to ten generations of students, many of whom
have become leaders of the State and nation. Since the
nineteenth century, it has offered distinguished graduate
and professional programs.
The University is a research university. Fundamental to
this designation is a faculty actively involved in research,
scholarship, and creative work, whose teaching is trans-formed
by discovery and whose service is informed by cur-rent
knowledge.
The mission of the University is to serve all the people of
the State, and indeed the nation, as a center for scholarship
and creative endeavor. The University exists to teach stu-dents
at all levels in an environment of research, free
inquiry, and personal responsibility; to expand the body of
knowledge; to improve the condition of human life through
service and publication; and to enrich our culture.
To fulfill this mission, the University must: [1] acquire, dis-cover,
preserve, synthesize, and transmit knowledge; [2]
provide high quality undergraduate instruction to students
within a community engaged in original inquiry and cre-ative
expression, while committed to intellectual freedom,
to personal integrity and justice and to those values that
foster enlightened leadership for the State and nation; [3]
provide graduate and professional programs of national
distinction at the doctoral and other advanced levels to
future generations of research scholars, educators, profes-sional,
and informed citizens; [4] extend knowledge-based
services and other resources of the University to the citi-zens
of North Carolina and their institutions to enhance the
quality of life for all people in the State; and [5] address, as
appropriate, regional, national, and international needs.
This mission imposes special responsibilities upon the fac-ulty,
students, staff, administration, trustees, and other gov-ernance
structures and constituencies of the University in
their service and decision-making on behalf of the
University.
The University of North Carolina at Chapel Hill
$❣❣❥❞❢ ❣ ✉✐❢ ❥❞❢ ❉✐❜ ❞❢
❣
❥ ❜ ❞❢ ❜ ❡ ❇❡#❥ ❥ ✉
❜✉❥ ❥ ❞❜ ❢❜
❋ ❡❢❡ ❑✈ ❢ ✹✶✲ ✸✶✶✶
C o m p r e h e n s i v e A n n u a l F i n a n c i a l R e p o r t
❇ ❉ ✉❥✉✈❢ ✉ ❏ ✉❥✉✈✉❥ ❣ ✐❢  ❥✇❢
❥✉! ❣ ❖
✉✐ ❉❜
❥ ❜ ❚! ✉❢# ❜ ❡ ❜ ❞ # ❢ ✉ ✈ ❥✉ ❣ ✉✐❢ ❚✉❜✉❢ ❣ ❖
✉✐ ❉❜
❥ ❜ ✸✶✶✶
✸ ✐❢  ❥✇❢
❥✉! ❣ ❖
✉✐ ❉❜
❥ ❜ ❜✉ ❉✐❜ ❢ ❥
Table of Contents
✹ ❏ ✉
❡ ✈ ❞ ✉
! ❚ ❢ ❞ ✉ ❥
4 Message from the Chancellor
5 Letter of Transmittal
30 Board of Trustees
30 Executive and Academic Officers
31 Organization Chart
32 Certificate of Achievement for Excellence in
Financial Reporting
✹ ✹ ❥ ❜ ❞ ❥ ❜ ❚ ❢ ❞ ✉ ❥
34 Report of the Independent Auditor
36 Basic Financial Statements
36 Balance Sheet
38 Statement of Changes in Fund Equity
40 Statement of Current Funds Revenues, Expenditures,
and Other Changes
41 Index to the Notes to the Financial Statements
42 Notes to the Financial Statements
✼ ✽ ❚ ✉ ❜ ✉ ❥ ✉ ❥ ❞ ❜ ❚ ❢ ❞ ✉ ❥
68 Schedule of Current Funds Revenues by Source
70 Schedule of Current Funds Revenues by Source
Adjusted for Inflation
72 Schedule of Current Funds Expenditures and Mandatory
Transfers by Function
74 Schedule of Ratios
82 Schedule of Revenue Bond coverage
83 Schedule of Debt Service to Current Funds Expenditures
84 Admissions, Enrollment and Degree Statistics
86 Faculty and Staff Statistics
❉ #
❢✐❢ ❥✇❢ ❇ ✈❜ ❥ ❜ ❞❥❜ ❙❢
✉ ✹
I n t r o d u c t o r y S e c t i o n ✸✶✶✶
✺ ✐❢  ❥✇❢
❥✉! ❣ ❖
✉✐ ❉❜
❥ ❜ ❜✉ ❉✐❜ ❢ ❥
Message from the Chancellor
As The University of North
Carolina at Chapel Hill moves
into the 21st century, the
nation’s oldest public universi-ty
is facing a defining moment
in its history. The convergence
of a number of factors, includ-ing
a major bond referendum
to help finance capital needs, a
new fund-raising campaign
and completion of a master
plan for central campus, signal
a rebirth – a renaissance, if
you will – for this great univer-sity.
These factors are set against a backdrop of an antici-pated
enrollment increase stemming from an influx of
college-bound N.C. high school seniors.
Carolina has worked hard during the last year to prepare
for this confluence of events. Few, if any, public universi-ties
are fortunate enough to be faced with such a wonder-ful
and exciting challenge.
During the 1999-2000 academic year, the University spent
a great deal of time educating North Carolina’s lawmak-ers
and general public about the need for the higher edu-cation
capital facilities bond referendum. Our administra-tors,
staff, students, alumni and friends effectively told the
story of our needs and, along with our peers at other
public universities and community colleges in the state,
helped convince the General Assembly to place the $3.1
billion referendum on the November 7 ballot. The bond
package was approved and will pump nearly $500 million
into Carolina to help with essential repairs and renova-tions
of existing facilities, as well as construction of
much-needed new ones.
As the nation’s oldest public university, Carolina has much
to be proud of. At the same time, however, the years are
taking their toll on our facilities. Twenty-one percent of
our buildings were constructed before 1930, and some
are well over 100 years old. We have outdated lab and
classroom buildings in need of major renovations and, in
some cases, replacement. Our support facilities also face
a backlog of repair and renovation needs. And the univer-sity
faces a growing shortage of classroom, laboratory
and office space – a shortage that will be exacerbated by
enrollment increases in the next decade.
Just as important as the direct impact of the bond money
on the Chapel Hill campus, however, is its impact on the
greater public of North Carolina – on the people who will
benefit from Carolina and other public institutions of
higher learning educating future leaders of the state, pro-ducing
cures for ravaging diseases, uncovering new tech-nologies,
and making North Carolina a better place to live
and work. The bond money will help us keep the doors of
educational and economic opportunity open wide for
the state.
Coming on the heels of the bond referendum is the new
Carolina First fund-raising campaign, currently in its silent
phase. The campaign, expected to raise some $1.5 billion,
will go public in October 2001. Those dollars will further
help the University address building needs, as well as
programmatic, faculty compensation and student accessi-bility
issues.
The campaign builds on a firm foundation of fund raising.
In 1999-2000, some 57,000 donors gave $165 million to
Carolina – a 10 percent increase over 1999 giving. And
faculty received more than $376 million in awards– a new
campus record – from federal and other sources in 1999-
2000. That total represents a 9 percent increase from fis-cal
1999. We also saw a 16 percent hike in National
Institutes of Health funding for research in federal fiscal
year 1999, ranking Carolina fifth nationwide among public
universities and the top public university in the South in
NIH support.
Coinciding with the bond referendum and fund-raising
campaign is the completion of a new master plan for the
central campus. To become the very best public universi-ty,
we must assure that Carolina can provide a quality liv-ing
and learning environment. That’s just what the new
master plan – designed by the Boston firm of Ayers Saint
Gross – does. It gives us a roadmap for future campus
development. Completion of the plan in fall 2000 is well
timed as UNC-CH prepares to embark on major renova-tion
and building projects funded through the anticipated
bond package and fund-raising campaign.
Taken individually, any one of these events would have a
tremendous impact on Carolina’s future. Yet taken togeth-er,
this confluence of events will leave the University
well-positioned to embrace the challenges of the 21st
century and fulfill its mission of outstanding teaching,
cutting-edge research and unparalleled service to the
people of North Carolina and beyond.
Sincerely,
James Moeser
Dr. James Moeser was elected as chancellor effective August
15, 2000, succeeding William O. McCoy, who had served as
interim chancellor since July 1999.
❉ #
❢✐❢ ❥✇❢ ❇ ✈❜ ❥ ❜ ❞❥❜ ❙❢
✉ ✻
Letter of Transmittal
November 10, 2000
To Chancellor Moeser, Members of The Board of
Trustees, and Friends of The University of North
Carolina at Chapel Hill:
❏ ❖  ❙ $ ❊  ❉  ❏ $ ❖
This Comprehensive Annual Financial Report includes
the financial statements for the year ended June 30, 2000,
in addition to other information useful to those we serve
and to those to whom we are accountable. Responsibility
for the accuracy of the information and for the complete-ness
and fairness of its presentation, including all disclo-sures,
rests with the management of the University. We
believe the information is accurate in all material respects
and fairly presents the University’s financial position, as
well as revenues, expenditures, transfers, and other
changes in fund balances. The Comprehensive Annual
Financial Report includes all disclosures necessary for the
reader of this report to gain a broad understanding of the
University’s operations for the year ended June 30, 2000.
The report is organized into three sections.
The Introductory Section includes a message from the
Chancellor, the transmittal letter, a listing of the
University Board of Trustees, a listing of executive and
academic officers, and an organization chart. Also
included is information on major University initiatives, as
well as financial and economic data. This section is
intended to acquaint the reader with the organization and
structure of the University, the scope of its operations, its
financial activities, the significant factors contributing to
the current fiscal environment, and anticipated factors
influencing our future.
The Financial Section presents the basic financial state-ments
and a report of the Office of the State Auditor.
The basic financial statements are prepared in accor-dance
with generally accepted accounting principles for
public colleges and universities, as defined by the
Governmental Accounting Standards Board and the
American Institute of Certified Public Accountants.
The Statistical Section contains selected financial, sta-tistical,
and demographic information. This information
is intended to present to readers a broad overview of
trends in the financial affairs of the University.
The financial statements in the Financial Section present
all funds belonging to the University and its component
units. While the Board of Governors of the University of
North Carolina System has ultimate responsibility, the
Chancellor, the Board of Trustees, and the Board of
Trustees of the Endowment Fund have delegated respon-sibilities
for financial accountability of the University’s
funds. Although legally separate, The University of North
Carolina at Chapel Hill Foundation, Inc. (Foundation) and
The University of North Carolina at Chapel Hill
Foundation Investment Fund, Inc. (Investment Fund) are
reported as if they are part of the University based on
Governmental Accounting Standards Board Statement 14.
The Foundation’s purpose is to aid, support, and promote
teaching, research and service in the various educational,
scientific, scholarly, professional, artistic, and creative
endeavors of the University while the Investment Fund’s
purpose is to support the University by operating an
investment fund for charitable, nonprofit foundations,
associations, trusts, endowments and funds that are
organized and operated primarily to support the
University. The financial statements of the Foundation
and the Investment Fund have been blended with those
of the University. Other related foundations and similar
non-profit corporations for which the University is not
financially accountable are not part of the accompanying
financial statements. The University of North Carolina at
Chapel Hill is a constituent institution of the sixteen cam-pus
University of North Carolina System, which is a
component unit of the State of North Carolina and an
integral part of the State’s Comprehensive Annual
Financial Report.
❋ ❉ $ ❖ $ , ❏ ❉ ❉ $ ❖ ❊ ❏  ❏ $ ❖
❇ ❖ ❊ $   - $ $ .
Despite the devastating impacts of hurricanes and ensu-ing
floods, the North Carolina economy still performed
quite well in the 1999-2000 fiscal year. The state contin-ued
to attract immigration to add to natural population
growth so that the U.S. Bureau of the Census estimated
the total population at 7,650,789 people as of July 1,
1999. This represented growth of 15.4 percent since the
1990 Census, well above the U.S. average of 9.6 percent.
Office of the
Vice Chancellor for Finance and Administration
The University of North Carolina at Chapel Hill
CB#1000, 300 South Building
Chapel Hill, N.C. 27599-1000
(919) 962-3798
THE UNIVERSITY OF NORTH CAROLINA
AT
CHAPEL HILL
✼ ✐❢  ❥✇❢
❥✉! ❣ ❖
✉✐ ❉❜
❥ ❜ ❜✉ ❉✐❜ ❢ ❥
The state was almost exactly like the U.S. average for
both the proportion of the population under age 25 (25.4
percent for North Carolina and 25.8 percent for the entire
U.S.) and the proportion 65 years old and above (12.5 per-cent
vs. 12.7 percent).
Total personal income in North Carolina was a record
$205.5 billion in fiscal 1999. By the second quarter of
2000 total personal income in the state was running at a
seasonally adjusted annual rate of $212.1 billion. This
was up 6.8 percent from the second quarter of 1999, right
in line with the 6.7 percent national increase for the same
period. Total personal income in North Carolina in the
second quarter of 2000 was $3.2 billion less than Virginia
and $16.0 billion less than Georgia.
Personal income per capita was $28,518 for the entire U.S.
in 1999. For North Carolina, the comparable figure was
$26,220 or 92 percent of the national average. This was
up 4.1 percent from 1998, a little below the national aver-age
increase of 4.8 percent. This level of income was
enough to put North Carolina in 28th place, just behind
Texas ($26,525) and just ahead of Missouri ($26,187).
These numbers can only be expected to improve in the
next year or two. In September 2000, when the national
unemployment rate was 3.9 percent, the unemployment
rate in North Carolina was only 3.6 percent. There were
only 141,200 people in the entire state in September who
were unemployed and looking for work. By contrast,
there were 3,807,400 people who were employed in North
Carolina in September, up 41,500 people or 1.1 percent
from a year earlier.
The unemployment rates in the state’s three largest met-ropolitan
statistical areas (MSAs) were close to the state
average in September, which was 3.3 percent on a not-seasonally-
adjusted basis. The Charlotte-Gastonia-Rock
Hill (SC) MSA had 3.4 percent unemployment, while the
Greensboro-Winston-Salem-High Point MSA had 2.7 per-cent
and the Raleigh-Durham-Chapel Hill MSA had one
of the lowest unemployment rates of any MSA in the
country at 1.5 percent. The Asheville MSA had a 2.3 per-cent
unemployment rate in September. Nationally, col-lege
graduates age 25 and over had an unemployment
rate of only 1.6 percent in October, 2000.
National economic growth should be much lower in fiscal
2000 than in fiscal 1999. North Carolina should outper-form
the U.S., but still grow less than in fiscal 1999. Gross
state product for North Carolina was $235.8 billion in
1998, 2.7 percent of the total U.S. and that made it the
12th largest state economically.
The University of North Carolina at Chapel Hill is continu-ing
its leadership role in helping not just North Carolina,
but the entire U.S. economy move from “old economy”
business practices to new knowledge-based technologies
and methods. This University plays a vital role in con-tributing
to the economic health of the region and the nation.
, ❇ ❑ $ ❙ ❏ ❖ ❏  ❏ ❇  ❏  ❋ ❚
The University continually strives for excellence in fulfill-ing
its teaching, research, and public service missions.
Certain successes and planned improvements are
described herein.
COLLEGE OF ARTS AND SCIENCES
The College of Arts and Sciences launched a series of
major initiatives during 1999-2000, including the following:
First Year Seminar Program
In its inaugural year, this innovative interdisciplinary pro-gram
reached over 1,000 students in 65 small seminars,
taught by some of the University’s most accomplished
senior faculty.
Office of Undergraduate Research
The new office provided unprecedented opportunities for
undergraduates to work one-on-one with faculty on spe-cial
research projects.
Johnston Center for
Undergraduate Excellence
The new Center opened in the fall, and 42 classes were
taught in the spring. The Center also hosted 430 non-classroom
events, offering undergraduates opportunities
to visit with distinguished guests including the Governor,
the Chief Justice of the State Supreme Court, and others.
Advising
The advising process was redesigned to make the system
more effective and meaningful for students. The system
now offers 8 new full-time advisers and 23 faculty mem-bers
serving as part-time advisers, compared to the past
when 50 faculty advised students part-time. Advisers had
more than 40,000 student contacts during the year.
Undergraduate Curriculum Review
This major ongoing curriculum review process will
involve faculty, students and administrators including a
series of public discussions of what it means to be an
educated person.
Interdisciplinary Initiatives
The College oversaw the planning for interdisciplinary
science initiatives in bioinformatics, genomics, nano-technology
and environmental sciences; a new Science
Complex; a new Center for Global Education; a new
Digital Multi-Media Center, and a new Center for
Public Policy.
Globalization and International Studies
The College established UNC bases in key areas of the
globe, reformed and expanded the Study Abroad program
and integrated it into the academic curriculum. The
College also established new undergraduate curriculum in
International and Area Studies.
❉ #
❢✐❢ ❥✇❢ ❇ ✈❜ ❥ ❜ ❞❥❜ ❙❢
✉ ✽
Arts and Sciences Information Service
This new office provided technical support to faculty, staff
and administration of the College, including re-design of
the College web site and incorporation of new technolo-gy
in the First Year Seminars.
Director of Communications
This new position was created in 1999-2000 to improve
internal and external communications for the College and
all of its constituents. The new communications director
joined the dean’s office in August and has launched a
news and information service utilizing email bulletins and
the new web site.
Research, Teaching, and Public Service
College faculty gave 2,300 public presentations and par-ticipated
in 540 performances and exhibitions; they pub-lished
2,400 books, chapters and journal articles, and
received 188 awards and professional honors. Community
service activities included a science bus that traveled
across N.C. taking innovative science teaching to school
children, and assistance from the department of city and
regional planning to eastern N.C. communities devastated
by Hurricane Floyd.
SCHOOL OF EDUCATION
This year, under the auspices of the Carolina Teaching
Network, we will be offering coursework in our new
Master’s Degree for Experienced Teachers. This master’s
program will be offered to cohorts of teachers who share
a school or school district. It will provide intensive
coursework during the summers and will sustain work
during the school year through internet communication
and meetings at sites close to teachers’ homes and work-places.
We will offer a master’s degree program in school
administration for teachers in a similar format. By work-ing
with cohorts who share school communities, we are
enabled to address curriculum, instruction and school
organization with groups of teachers eager to work
together to improve their schools and the quality of their
own teaching practices.
These programs join other off-campus efforts to prepare
and support teachers: our federally funded program to
provide English as a Second Language training to teach-ers;
our work with lateral entry teachers in NCTeach; our
internet based courses in special education; and our work
with teachers in every school district of North Carolina
through LEARN NC, our internet based network for
teachers offering teacher-authored curriculum tailored to
the standard course of study and a remarkable library of
hot-link curriculum resources, including connections to
the Ackland Museum collection, programs from the
Morehead planetarium, and a new on-line system enti-tled
Carolina On-Line Teacher (COLT) for teachers inter-ested
in developing skills in distance education.
While face-to-face interaction is essential to any curricu-lum
that addresses education, it is important to utilize dis-tance
education resources where appropriate to make
education accessible and to provide channels for conver-sation
and community among teachers dispersed across
the state and the nation. This year every member of the
School of Education will be trained to become familiar
with software that supports on-line curriculum.
Our efforts to support teacher education and practicing
teachers will be enhanced by access to the new R.D. and
Euzelle Smith middle school in Chapel Hill/Carrboro
School District. Located between Seawell Elementary
School and Chapel Hill High School, the middle school
completes an educational park that offers curriculum
development opportunities for area teachers and School
of Education students and researchers. The new school
will also provide a site for off-campus courses and work-shops
for teachers.
The Education Arts Agenda continues to flourish, work-ing
with arts departments across campus to infuse
teacher education courses with arts experiences. This
year’s focus is the jazz festival that will take place on cam-pus
in the spring semester, offering us exciting opportuni-ties
to address the relationship of structure to improvisa-tion
in teaching as well as the rich history of jazz in
African-American culture. In addition the Curriculum,
Music, and Community project which brings indigenous
musicians into schools, linking old time music, blues,
gospel and jazz to subjects across the fourth grade cur-riculum
will continue, adding new schools in the
Piedmont and Eastern Carolina to the pilot projects
already initiated in the western counties of the state.
INSTITUTE OF GOVERNMENT
Fiscal Year 1999-2000 was an excellent year for the
Institute in all areas, most notably in the breadth and
quality of our faculty, staff and student response to
Carolina communities following the floods of
Hurricane Floyd.
✷✿✿✿ 1 ✸✶✶✶ H i g h l i g h t
The Education Arts Agenda
continues to flourish, working with
arts departments across campus to
infuse teacher education courses with
arts experiences.
✾ ✐❢  ❥✇❢
❥✉! ❣ ❖
✉✐ ❉❜
❥ ❜ ❜✉ ❉✐❜ ❢ ❥
This year the long-awaited expansion and renovation of
the Institute’s 40-year-old building began. With the build-ing
increasing substantially in size, the Institute is working
to supplement its state appropriation with $4 million in
additional public and private funds to complete all the
planned renovations and to fully furnish, equip and land-scape
the building.
Institute faculty taught over two hundred courses reach-ing
more than 14,000 of North Carolina’s public officials.
Teaching, research and service highlights for the year
include:
The graduation of 91 municipal and county officials from
the Institute’s flagship150-hour Municipal and County
Administration course. These students joined more than
3,300 public officials who have completed the curriculum
since 1954.
Five teams of Master of Public Administration students
conducted research and analysis projects for: Town of
Hillsborough—Comprehensive Ten-year Street Re-paving
Plan; Town of Carrboro—Review of Town Advisory
Boards and Performance Measures for the Planning
Department; NC Coastal Federation—Evaluation of
Coastal Management Alternatives for Dealing with
Beach Erosion; Leadership Triangle—Community Impact
Assessment.
Thirty-one teachers of the high-school course “Economic,
Legal and Political Systems” (ELP) attended a weeklong
summer workshop to learn new interactive teaching tech-niques
for helping students understand and value their
roles as citizens. Workshop sponsors were The Cannon
Foundation, the Constitutional Rights Foundation, and the
NC Association for the Prevention of School Violence.
The Jessie Ball duPont Fund contributed $150,000 to
initiate a multi-year research project to help government
agencies and nonprofit organizations devise effective
ways to communicate and work together in meeting state
and community needs. The Institute also is participating
in a research project sponsored by the Pew Partnership
for Civic Change to gather and disseminate promising
practices related to community building and civic prob-lem
solving.
Kevin FitzGerald, formerly Director of the NC Division of
Social Services, was hired as Planning Director for the
new interdisciplinary Center for Public Technology. The
center will offer teaching, research and other technical
assistance to improve the delivery of public services and
transform citizen involvement with government.
FitzGerald will guide the design of the Center in partner-ship
with state and local governments, technology com-panies,
other academic units and institutions, and private
companies and nonprofit organizations doing business
with government.
In the aftermath of Hurricane Floyd, at least 15 faculty
members advised and taught local and state government
officials on issues such as emergency local government
finance; FEMA accounting; governmental authority to
enter private property for emergency; inspections; emer-gency
contracting; funding to provide high-ground hous-ing;
state-level emergency funding options; and zoning
and planning options in emergencies. MPA students spent
fall break helping local government managers with tasks
related to disaster relief. For example, students working in
Goldsboro evaluated the damage-assessment process and
searched tax records for home values, then entered the
values on a GIS layer showing the locations of those
homes. The Civic Education Consortium also worked
with the NC Department of Administration, the Rural
Economic Development Center, the NC Department of
Public Instruction, and 4-H Youth Development to con-duct
a survey of hurricane recovery needs among youth
in the affected region. The survey included an April 2000
Information Highway summit about recovery needs
involving teenagers from Duplin, Edgecombe, Lenoir, and
Pitt Counties.
SCHOOL OF SOCIAL WORK
In 1999 U.S. News & World Report rated the School of
Social Work (SSW) 7th of over 130 masters programs
nationally and 4th among public schools of social work.
While this ranking is a testament to our hard work and
successful history, the school is committed to further
growth and new opportunities in education, research, and
service to the community and international activities.
Education
2000–2001 is the year of self-examination as the SSW
pursues reaccreditation of its Masters’ Program from the
Council on Social Work Education and Program Review
from the Graduate School. This will entail a comprehen-sive
examination of policies, operations, curriculum and
outcomes.
In the fall of 2000, we opened a new part-time distance
education program in Fayetteville and admitted the final
cohort of students in our Charlotte program. Overall our
✷✿✿✿ 1 ✸✶✶✶ H i g h l i g h t s
In the fall of 2000, The School of
Social Work opened a new part-time
distance education program in
Fayetteville and admitted the final
cohort of students in our Charlotte
program. Overall the incoming MSW
class of 2000 was the largest in the
School’s history.
❉ #
❢✐❢ ❥✇❢ ❇ ✈❜ ❥ ❜ ❞❥❜ ❙❢
✉ ✿
incoming MSW class of 2000 was the largest in the
School’s history.
Faculty, staff and students from the SSW have been
active participants in North Carolina flood relief efforts,
assisting with donation collections, cleanup and long-term
psychosocial assistance to flood survivors.
Our faculty and staff have been prolific, publishing
eight books, 21 book chapters and over 50 articles in
1999–2000.
Research and Service
During fiscal year 1999-2000, over 45 externally funded
projects totaling almost $12 million involved more than
100 faculty and staff. One major new project is the Child
Welfare Education Collaborative, a $1.5 million collabora-tive
effort among the state’s three graduate social work
programs, county departments of social services and
other statewide organizations.
During 1999-2000, the Jordan Institute for Families con-tinued
to serve as a major source for off-campus educa-tion
of professionals in adult and children’s mental health,
child welfare, aging, juvenile justice, and substance abuse
services, among others. In all, 14,000 individuals in
almost all of the state’s 100 counties participated in work-shops,
seminars, trainings and conferences sponsored by
the SSW through the Institute.
During 2000-2001, the Jordan Institute for Families
intends to apply to the National Institute on Drug Abuse
(NIDA) for funding for a Social Work Research
Development Program. The Institute will also submit a
proposal to the National Institute on Mental Health
(NIMH) for support of a Social Work Research
Development Center.
International Activities
This past summer the SSW sponsored two summer
school abroad courses: one to Mexico, exploring the
social and economic forces contributing to increasing
migration to the US, and one to Eastern Europe, analyz-ing
and comparing public and private social development
institutions. The School hosted two Fulbright Scholars in
1999-2000 and sponsors monthly informal discussions of
international social issues through its International Social
Work Exchange Program. Faculty continues to provide
consultation and training in a number of countries, most
recently Lithuania, Israel and Romania.
KENAN-FLAGLER
SCHOOL OF BUSINESS
With the dedication of the new state-of-the-art Paul J.
Rizzo Conference Center at Meadowmont on Sept. 22,
2000, Kenan-Flagler ushered in a new era for its
Executive Education Program. The Center, located on the
pastoral, 28-acre Meadowmont property off of N.C. 54,
offers an ideal location for business executives to tackle
strategic issues. The center is named for school alumnus
Paul J. Rizzo, retired vice chairman of IBM, former
Kenan-Flagler dean (1987-92) and presently chairman of
the board and partner in Franklin Street Partners Inc., to
recognize his leadership and service to Kenan-Flagler and
UNC-Chapel Hill. Kenan-Flagler’s Executive Education
programs have been consistently ranked among the best
in the country by publications including Business Week,
U.S. News & World Report and the Financial Times.
Kenan-Flagler will admit its first students in February
2001 to the Corporate MBA Program, the first interna-tional
executive MBA program custom-designed for cor-porate
teams. Teams of five to seven executives from
non-competing companies will spend 20 months getting
their MBAs, with residencies in Chapel Hill, Asia, Europe
and Latin America. Between residencies, teams will
engage in interactive, Internet-based learning. The cap-stone
of the Corporate MBA is a consulting project for
each sponsoring company. Nortel Networks is among the
first companies to sign-on for this innovative program.
In an innovative application of technology to business
education, Kenan-Flagler is tracking in real time the dra-matic
changes being made in the School’s MBA Program
– and it’s unveiling those improvement strategies to the
world. www.MBAscorecard.unc.edu, the first Web site of
its kind, reveals the MBA Scorecard, which shows the
MBA Program’s objectives and how they are measured,
current performance and goals and improvement plans
under way. The MBA Scorecard is the first application of
the balanced scorecard idea to business education. The
pace-setting idea appealed to Dell Computer Corp., which
sponsored the creation of the Web site.
Kenan-Flagler is leading the way in preparing future lead-ers
for the ever-changing, digital world. In January 2000,
the school established eUNC (http://eunc.unc.edu), an e-business
research center devoted to leading-edge
research, education and practice in the areas of informa-tion
technology, commerce and knowledge. Under the
auspices of eUNC, students can get help starting their own
With the dedication of the new
state-of-the-art Paul J. Rizzo
Conference Center at Meadowmont
on Sept. 22, 2000, Kenan-Flagler ush-ered
in a new era for its Executive
Education Program.
✷✶ ✐❢  ❥✇❢
❥✉! ❣ ❖
✉✐ ❉❜
❥ ❜ ❜✉ ❉✐❜ ❢ ❥
technology-based businesses in the new eLauncher, an
incubator located in the basement of the McColl building.
The School continues to be a leader in the critical and
emerging business area of environmental management
and sustainable enterprise. The World Resources Institute
and the Aspen Institute recognized Kenan-Flagler’s pre-eminence
in the field of sustainability in October 1999 by
awarding it the nation’s top ranking for incorporating
environment-business issues in the MBA Program. Two of
the School’s faculty members were named faculty pio-neers
for reshaping business education to integrate envi-ronmental
and social issues in corporate decision-making.
Kenan-Flagler Dean Robert S. Sullivan met with
President Bill Clinton in April 2000 to brainstorm ways to
bridge the “digital divide,” to ensure that every person
has equal access to technology. Sullivan, an acknowl-edged
technology expert, was among the leaders invited
to participate in the president’s roundtable discussion on
the digital divide in Whiteville, N.C., where Clinton
stressed the importance of high-speed Internet access to
rural economic development. Sullivan also met privately
with key state leaders on ways to close the digital gap in
North Carolina.
SCHOOL OF JOURNALISM
AND MASS COMMUNICATION
This year marked the School’s one-year anniversary in its
splendid new home on the campus: Carroll Hall. More
than 400 friends gathered March 31-April 1, 2000, to ded-icate
and celebrate the newly renovated building. Many
alumni, friends, corporations and foundations have made
generous gifts to the School, raising more than $5 million
in private money for the renovation.
The School of Journalism and Mass Communication has
been nationally accredited since 1958. We were the first
school in the United States to receive full, unit accredita-tion.
In our latest accreditation report, in May 1997, the
national Accrediting Council on Education in Journalism
and Mass Communications (ACEJMC) gave our School
nothing less than a rave review. It said that our School is
arguably the best in the nation.
The mass media and communication businesses and
other entities in the state – and far beyond – continue to
look to us for graduates to hire and for research and for
professional partnerships of many kinds.
The School focused on two areas of specialty this year.
Our relatively new medical journalism program has taken
off, with the first master’s students entering in fall 2000.
Attempts are being made to develop a specialty in sports
communication because it’s so pervasive not only in the
United States but also internationally.
The School’s Executive Education program has proven
successful, offering monthly workshops and seminars on
newspaper design, media law, the performing arts, politi-cal
coverage, marketing communication, public relations,
the Latino community and the business of sports. The
program is committed to providing communication lead-ers
and specialists with the most up-to-date knowledge
and perspective needed to succeed in an increasingly
competitive market.
Undergraduate excellence continues to be a top priority.
Each year national and international awards go to stu-dents
in our five undergraduate sequences. This year our
School came in third in the nation in the annual Hearst
writing competition. “Carolina Week,” a 30-minute week-ly
campus news program, debuted in spring 2000.
Twenty-seven of our 60 graduate students presented 37
papers in the AEJMC Southeast Regional Colloquium of
the History, Law, Newspaper and Magazine Divisions,
which was held in the School. And they won 10 of the 14
regional prizes that were given.
Professional partnerships continue to be vital to our
School because they enable our students, faculty, staff
and outside constituents to learn more about our current
mass communication issues and practices. This year, one
current partnership, the USA Today Minisabbatical
Program, benefitted both USA Today and the School by
allowing fellows to talk to classes and interact with faculty
members and students.
Two outstanding foundations — the Park Foundation and
The Freedom Forum — continue to give big annual
grants to help make our graduate program world-class.
Our 60 Park Fellows celebrated the Carroll Hall dedica-tion
with a champagne breakfast to honor the Park family.
And we hope to have the first Park Visiting Professor in
the School for spring 2001. All three Freedom Forum
Ph.D. Fellows graduating this year landed excellent teach-ing
jobs, including one who will have an endowed profes-sorship
right after Ph.D. school.
✷✿✿✿ 1 ✸✶✶✶ H i g h l i g h t s
In our latest accreditation report, in
May 1997, the national Accrediting
Council on Education in Journalism
and Mass Communications (ACEJMC)
gave our School nothing less than a
rave review. It said that our School is
arguably the best in the nation.
❉ #
❢✐❢ ❥✇❢ ❇ ✈❜ ❥ ❜ ❞❥❜ ❙❢
✉ ✷✷
SCHOOL OF INFORMATION AND
LIBRARY SCIENCE
SILS continues to benefit from its number one ranking
among schools of information and library science award-ed
by U.S. News and World Report in March 1999. The
school attracted very high-caliber students from around
the world. The 1999 (calendar year) entering class of 101
master’s students represented 18 states and seven foreign
countries. The average GRE score of master’s entrants
was 1173 and the average undergraduate GPA was 3.33.
In October 1999, SILS was awarded a $3.7 million con-tract
to provide library services for the Environmental
Protection Agency (EPA) in Research Triangle Park for a
five year period. Over the last 26 years that SILS has held
this contract, over 250 students have served as paid
library interns at EPA and the National Institute for
Environmental Health Sciences.
In November 1999, SILS was reviewed for accreditation
of its masters’ programs by the American Library
Association and thereafter by the UNC Graduate School.
Both reviews were helpful and productive, pointing out
both resource needs, such as additional space and staff,
as well as areas of strength. In January 2000, we learned
that both our master’s degrees in information science and
library science had been accredited for a full seven-year
period. This is the first time that an information science
master’s program has achieved the maximum accredita-tion
period.
Building on the popularity and strength of the undergrad-uate
minor, SILS requested permission to plan a new
major in information science from the General
Administration in 1999. This permission was granted in
January 2000 and detailed curriculum plans have been
developed. This new degree responds directly to the need
for information technology professionals in Research
Triangle Park.
A highlight in development during 1999-2000 was the
endowment of the Michael Hooker Fellowship in Applied
Networking. The $120,000 donation was made jointly by
Selby Wellman, John Chambers and CISCO Systems.
Digital Library Week organized by SILS Boshamer
Professor Gary Marchionini attracted researchers from all
over North America and the Research Triangle. The week
was concluded with the annual Henderson Lecture pre-sented
by Michael Lesk from the National Science
Foundation. The third annual Susan Steinfirst lecture was
given by Seymour Simon, author of 150 highly acclaimed
children’s science books. The event attracted over 100
local area children and families.
SILS faculty members continued to win major national
awards in 1999–2000. Professor and Emerita Evelyn
Daniel won the Professional Service Award from the
Association for Library and Information Science
Education. Professor Paul Solomon won the prize for best
article in the Journal of the American Society for
Information Science. Dean and Professor Joanne Gard
Marshall won the Winifred Sewell Prize for Innovation in
Information Technology from the Biomedical and Life
Sciences Section of the Special Libraries Association.
Boshamer Professor Gary Marchionini won the Frederick
G. Kilgour Award for Research in Library and Information
Technology sponsored by OCLC Inc. and the Library and
Information Technology Association (LITA), a division of
the American Library Association.
SCHOOL OF LAW
The School of Law opened and dedicated a marvelous
58,000 square foot building addition in October, 1999.
The facility provides significant, and strongly needed,
small and medium-sized classrooms, new student services
offices, a library expansion, enlarged student organization
space, an excellent clinical education plant and a beautiful
central rotunda. The addition has dramatically trans-formed
the Law School’s physical facility. The very
atmosphere of the institution has changed-creating a
powerful sense of optimism and excellence in both the
faculty and the student body. That sense of optimism
was ratified and intensified by an extraordinarily positive
reaccreditation report issued by the American Bar
Association in the spring. Those who work at the School
of Law have every confidence that it can build on its tra-ditions
to become one of the very best public law schools
in the country.
As an example of that progress, and of our complemen-tary
goal to more effectively serve the people of North
Carolina, in July, 2000 the Law School launched a new
Center for Banking and Financial Services. This Center,
working closely with the Business School and the
Charlotte legal and banking communities, will cement the
Carolina Law School’s role as a leading institution for the
The School of Law opened and ded-icated
a marvelous 58,000 square
foot building addition in October,
1999. The addition has dramatically
transformed the Law School’s physi-cal
facility.
✷✸ ✐❢  ❥✇❢
❥✉! ❣ ❖
✉✐ ❉❜
❥ ❜ ❜✉ ❉✐❜ ❢ ❥
study of banking law. Professor Lissa Broome is the new
center director. She brings tremendous expertise in the
legal challenges facing banks and great contacts with the
banking world through her own scholarship and strong
track record of the Banking Law Institute. The Center
will allow us to bring into our curriculum the most
accomplished banking lawyers in America. The Center is
already conducting a commissioned study of North
Carolina banking laws, in order to propose amendments
and revisions of the present code. And the conference
work, already scheduled, will help to mark this institution
as a focal point for legal study. This new effort illustrates
the Carolina Law School’s goal of developing a caliber of
faculty, students and programs that is second to none. We
seek to improve the quality of our efforts while we deep-en
and foster our traditional ties to the people and institu-tions
of North Carolina.
FRANK PORTER GRAHAM
CHILD DEVELOPMENT CENTER (FPG)
Since its inception, FPG has embraced a dual mission of
generating knowledge through research and sharing this
knowledge through a variety of outreach activities. Last
year, 51 FPG grants, totaling more than $10 million were
devoted to research; 27 FPG grants, totaling more than $8
million, focused on outreach initiatives.
Major research themes included enhancing the quality of
early care and education environments for children (birth to
5), supporting children with disabilities through early inter-vention,
and strengthening parenting and family support.
The center was awarded a three-year $855,336 NIH grant
to assess how parents from different cultural backgrounds
who have a child (or who are at risk for having a child)
with a genetic disorder seek out, understand, and use
knowledge to interpret genetic disorders and make deci-sions
about reproduction and health services. A $539,898
grant from the US Department of Education is addressing
early identification of children with fragile X syndrome.
The National Center for Early Development and Learning
housed at FPG was awarded a three-year $11 million
extension to examine public school-based early childhood
education in the US.
The center’s outreach activities included technical assis-tance,
web-based dissemination of research findings,
model demonstration projects, and product development.
The center received a $305,239 grant to train assessors of
child care centers in accordance with North Carolina’s
new five-star licensing system. A $782,261 grant will
evaluate the effects of professional development activities
conducted through distance learning. The National Early
Childhood Technical Assistance System (NECTAS) deliv-ered
7,500 client-centered services last year to state-level
administrators of early education and intervention pro-grams.
The average number of daily hits on the FPG web
site approached 20,000 last year.
SCHOOL OF DENTISTRY
During 1999-2000, the School of Dentistry introduced
several new and significant initiatives within the School’s
mission areas of teaching/learning, research, patient care
and service.
Teaching/Learning
During the past year, development of the Electronic
Syllabus project and the online database, which contain
teaching/lecture materials for our DDS and allied dental
education students, continued. A new Curriculum
Enhancement Fellowship Program, which provides
stipend support to 18 DDS and allied dental students for
assisting Course Directors with the development of novel
digital teaching materials and products, was implemented.
One lecture hall and four seminar rooms were renovated
to provide state-of-the-art digital technologies, which will
permit the further implementation of our evolving digital
curriculum.
Research
The major initiative was the creation and implementation
of the Comprehensive Center for Inflammatory
Disorders, officially created on August 1, 1999. This
Center brings together 33 principal investigators from the
disciplines of basic science, dentistry, medicine, epidemi-ology,
health services, education, and community work to
study the cause, effect, treatments and outcomes of
chronic inflammatory disorders. Federally-funded and
total support for research activity reached its highest level
ever, and new initiatives in craniofacial growth and devel-opment,
biomaterials, inflammation, and tissue engineer-ing
were responsible for the continued growth in
research. The implementation of a new training program
in neurosciences, the expansion of the Clinical Scholars
and Oral Biology Graduate Programs, and the continued
excellence of the Oral Epidemiology Training Program
were additional activities. Progress continued to be made
in all areas of research activity, including craniofacial dis-eases
and disorders, studies on incidence, risks, and out-come
treatments for third molar extraction, clinical evalu-
✷✿✿✿ 1 ✸✶✶✶ H i g h l i g h t s
Since its inception, FPG has
embraced a dual mission of
generating knowledge through
research and sharing this knowl-edge
through a variety of
outreach activities.
❉ #
❢✐❢ ❥✇❢ ❇ ✈❜ ❥ ❜ ❞❥❜ ❙❢
✉ ✷✹
ation of dental adhesives, the effects of anti-bacterial and
anti-inflammatory agents on periodontal disease, gene
therapy for AIDS, studies on bone grafting and remodel-ing,
studies on new dental composites, and the role of
periodontal disease in coronary heart disease and
preterm low birth weight deliveries. New initiatives in the
genetic regulation of bone loss and regeneration, aerody-namics
of speech in cleft palate patients, molecular basis
for craniofacial abnormalities, sliding mechanics for
orthodontia appliances, dental materials and adhesives,
and inflammatory mechanisms in oral and systemic dis-eases
highlight the year.
Patient Care
We are continuing to integrate and improve our clinical
computer systems. Eventually clinical and financial data
will be seamlessly interfaced with our student grading
system. Digital radiography has been implemented on a
limited basis but this could be expanded to include the
entire school. Procedures are being examined to opti-mize
the use of staff and materials.
Public Service
The School produced its first live Webcast for the 45th
Annual Meeting of the Southern Conference of Deans
and Dental Examiners. Participants at a remote site were
able to view live clinical procedures being demonstrated
at the School. A mobile Webcast station is now available
to assist with live and pre-recorded online video presenta-tions.
Dental OPPS (Online Professional Posting Site) was
created to allow alumni and other dental professionals to
post practice opportunities and staff needs. Working in
cooperation with the General Alumni Association, the
school launched an online alumni directory to enhance
communication among alumni both locally and interna-tionally.
The Dental Alumni Association underwrote the
cost of special project to beautify the southwest corner of
the School of Dentistry complex. The newly landscaped
Alumni Garden will be dedicated in September as part of
the School’s 50th Anniversary Celebration.
NORTH CAROLINA
AHEC PROGRAM
Health Careers and Workforce Diversity
Last year 14,058 young people participated in AHEC
activities in health careers and workforce diversity.
Activities included shadowing and mentoring experiences,
summer experiential activities, health career fairs and
forums, and cultural sensitivity training. These programs
are designed to expose students of all ethnic and socio-economic
backgrounds to opportunities in health profes-sions,
help students prepare for challenging careers in
healthcare, and address workforce shortages that exist in
North Carolina.
Library and Information Services
The N.C. Area Health Education Centers (AHEC)
Program has received a grant from the Duke Endowment
to continue developing its digital library, a World Wide
Web portal that provides access to high-quality electronic
health resources for physicians and clinical educators.
The AHEC Digital Library (http://library.ncahec.net/)
provides health information to AHEC staff, faculty, med-ical
residents and more than 2,000 preceptors located
across the state. The library offers desktop access to pri-mary
medical databases, electronic full-text medical jour-nals
and textbooks, clinical practice guidelines and
patient education information. As the digital library is
developed, its resources will be extended to all health
practitioners throughout the state.
The AHEC Program received $150,000 from The Duke
Endowment. An additional $250,000 is expected for the
program over the next two years after an annual approval
process. The funds will be used to add new subject areas
to the digital library collection, and will make resources
available free of charge to new audiences.
Off-Campus Degree Programs
AHEC designs and supports off-campus programs that
improve educational mobility for students in nursing, pub-lic
health, and social work. The AHEC Program allocates
funds for these programs, and provides the schools and
students with logistical support, classroom space, com-puter
support, and library support. In addition, they help
identify appropriate clinical sites and develop preceptors.
There are currently more than 400 students enrolled in
AHEC-supported off-campus degree programs: 67 stu-dents
in public health; 14 MSW students; and 320 stu-dents
are working toward off-campus nursing degrees.
SCHOOL OF MEDICINE
A new Department of Genetics was established this year,
increasing the number of academic departments in the
School to twenty-six. The School has recruited eight new
department chairs since January 2000 (for a total of four-teen
new chairs and four new center directors since
The N.C. Area Health Education
Centers (AHEC) Program has
received a grant from the Duke
Endowment to continue developing its
digital library, a World Wide Web por-tal
that provides access to high-quality
electronic health resources for physi-cians
and clinical educators.
✷✺ ✐❢  ❥✇❢
❥✉! ❣ ❖
✉✐ ❉❜
❥ ❜ ❜✉ ❉✐❜ ❢ ❥
1997), representing an unprecedented period of major
change in the School’s senior leadership.
New and renovated research facilities are a top priority of
the School to be supported by both new University and
School investment. Attractive space will enable the
School to continue to attract and retain first-rate scien-tists
in the priority areas of genomics and bioinformatics,
the neurosciences, infectious diseases, cancer programs,
vascular biology and clinical research and technology
transfer.
The School received notification of funding of two federal
grants, each for five years. The Health Careers
Opportunity Program grant from the Department of
Health and Human Services will provide $2.2 million to
support enrichment programs for minority and other dis-advantaged
students to prepare them for medical school
application. The NIH has renewed our Short Term
Research Training Grant that provides stipends to
enrolled medical students for participation in projects for
2-3 months with faculty preceptors. Funded by the
Health Affairs Interdisciplinary Education Committee, the
School designed and implemented a case based exercise
within existing courses across five UNC schools to
demonstrate the team approach to health care.
After Hurricane Floyd devastated many areas in eastern
North Carolina in September 1999, the School’s faculty
and students responded to relief efforts in important
capacities. Family Medicine faculty coordinated an effort
to acquire medications and distributed them in eastern
North Carolina, resulting in more than 500,000 doses of
oral prescription medications and nearly 7,000 packages
of topical products, inhalers, injections, nutritional supple-ments,
cough and cold products, and medication-related
devices available for distribution to patients. Faculty
established and staffed a relief clinic in Grifton, NC for
seven weeks, working with the North Carolina Academy
of Family Practice. Psychiatry faculty offered crisis serv-ices
to the victims of Hurricane Floyd and their care-givers
and “crash course” training to volunteers from the
UNC Health Care System, and to local professionals in
eastern North Carolina. Seventy medical students
received recognition by the Surgeon General for volun-teering
for one week during their second year clinical
medicine course in Eastern North Carolina assisting in
relief efforts following Hurricane Floyd.
The Clinical Center for the Study of Development and
Learning (CDL) was awarded a grant from the North
Carolina Division of Early Intervention and Education to
establish a regional multi-disciplinary resource team to
provide training, technical assistance, etc. to existing early
intervention agencies in a five-county area of North
Carolina working with children birth to 5 years with low
incidence disabilities (visual impairment, hearing impair-ment,
autism, and other mental health concerns).
A project in the Department of Emergency Medicine was
funded by the North Carolina Office of Emergency
Medical Services and the North Carolina Governor’s
Highway Safety Initiative to develop a statewide electron-ic
EMS medical record to be used by all EMS systems in
North Carolina. The program will allow local EMS sys-tems
to capture and store useful information to promote
quality care, improve patient outcomes, and advance pre-hospital
outcomes-based research.
In April 2000 Rex Healthcare in Raleigh became part of
the UNC Health Care System to complement and expand
the existing services and programs offered by UNC and
Rex, and to enhance the abilities of both organizations to
serve patients and families in the greater Triangle area.
SCHOOL OF NURSING
This was an active year for the School of Nursing. In July
1999, Linda Cronenwett, PhD, RN, FAAN, became Dean
of the School and led a school-wide effort to review and
evaluate the School’s organization and administrative
structure. With input from faculty, staff, students, alumni
and clinical partners, a new administrative structure was
created and implemented to ensure the strength of the
School’s academic, research, and clinical initiatives.
In response to the growing nursing shortage and, in par-ticular,
the need for greater numbers of nurses trained at
the master’s level, the School implemented a new MSN
Outreach Program in collaboration with Wake AHEC.
This year, 64 students completed two courses at the Wake
site; 29 of these students have been accepted into the
MSN program, with 16 matriculating for full-time study
on the Carolina campus, and 13 electing the part-time
Wake Outreach option.
Recognizing the need to reduce the health disparities
experienced by rural residents of our state, the School
developed a Rural Community-Oriented Primary Care (R-COPC)
educational program for Primary Care-Family
Nurse Practitioner (PC-FNP) students. A 3-year, $725,000
grant from the Bureau of Health Professions, US-DHHS,
✷✿✿✿ 1 ✸✶✶✶ H i g h l i g h t s
Recognizing the need to reduce the
health disparities experienced by
rural residents of our state, the School
developed a Rural Community-
Oriented Primary Care (R-COPC)
educational program for Primary
Care-Family Nurse Practitioner (PC-FNP)
students.
❉ #
❢✐❢ ❥✇❢ ❇ ✈❜ ❥ ❜ ❞❥❜ ❙❢
✉ ✷✻
has been awarded to support implementation of the pro-gram,
which will prepare graduates to practice as Family
Nurse Practitioners in rural communities with traditional-ly
under-served populations. The program provides a
multi-cultural learning environment and increases accessi-bility
of FNP programs to students from underrepresent-ed
ethnic minority and other disadvantaged backgrounds.
A major initiative this year was the creation of a Minority
Visiting Scholars program. The program involves the
recruitment and hosting of underrepresented ethnic
minority nursing scholars for one-week periods with the
intent of promoting the intellectual climate of the School,
conveying our commitment to inclusiveness, and enhanc-ing
our ability to recruit underrepresented minority schol-ars
to faculty positions within the School of Nursing. Dr.
Rhetaugh Dumas, Vice Provost Emerita, Dean Emerita,
and Lucille Cole Professor of Nursing at the University of
Michigan was our first visiting scholar. Throughout her
visit, Dr. Dumas worked with nursing faculty, students and
staff to discuss the issues involved in creating a culture of
acceptance for ethnic minorities within academia. The
School also hosted a forum on Race and Scholarship that
brought together distinguished minority scholars from
UNC-CH to discuss the experiences of minority scholars
and professionals. Drs. Angela Bryant, Genna Rae
McNeil, Keith Wailoo, and Henry Frierson, served as
panel members, and Dr. John Hatch moderated the ses-sion.
As did many others in the University, faculty, students,
and staff of the School of Nursing responded to the dev-astation
caused in eastern North Carolina by hurricane
Floyd by devoting time, energy, and material goods to the
relief effort. Faculty and graduate students staffed shel-ters
and temporary health clinics. Senior nursing stu-dents
in a Psychiatric Mental Health Nursing course com-pleted
a 3-week intensive clinical experience in one of the
hardest hit towns, Grifton, NC. Under the supervision of
their nursing instructor, they completed 60 hours of clini-cal
training, learning how to deliver post-disaster crisis
care. Two additional clinical groups have since traveled
to the town, and the experience is offered to other stu-dents
studying community/mental health nursing.
The School achieved a new record in research funding.
Faculty and doctoral students garnered $5.5 million in
research support from the National Institutes of Health
(NIH) and other foundations and agencies. Our school
was again ranked fourth among all schools of nursing in
research funding from NIH. Collectively, the School’s
research studies involve and provide services to individu-als
in over 70 counties in the state.
Finally, the School began construction on a 1,000 square
foot addition to the Biobehavioral Laboratory, which pro-vides
equipment and training for the assessment of real-time
biological and behavioral parameters. The new
addition will provide a two-room sleep lab, space for
preparation and storage of biological assays, and an
instrumentation facility for development, evaluation and
training in the use of non-invasive ambulatory measure-ment
techniques.
SCHOOL OF PHARMACY
The revolution in molecular biology is at the cusp of
establishing genes as therapeutic agents, much like antibi-otics
or any other drugs. Genes are in fact drugs: they
have doses, they have therapeutic effects, they have
adverse effects, and they have the potential to cure dis-eases
that are currently beyond our reach. In collabora-tion
with the School of Medicine (Gene Therapy Center
and Department of Pharmacology), faculty in the School
of Pharmacy are part of an NIH grant totaling $4 million
over five years to advance the use of genes as therapeutic
agents. Entitled “The Pharmacodynamics of Genes and
Oligonucleotides,” the project should provide important
information on using genes in the most safe and effective
manner.
Planning is underway for an Institute on Natural Medicine
(INM). One of the leading figures in the science of natu-ral
medicine is Kenan Professor K. H. Lee of the School
of Pharmacy. Dr. Lee is currently Director of the Natural
Products Laboratory, and in collaboration with Research
Triangle Institute, the Office of Technology Transfer at
UNC, and other scientists and administrators at UNC is
planning for an international center of excellence that will
develop new compounds with therapeutic potential from
natural products, will develop quality control standards (a
critical deficiency in current national policy), and coordi-nate
placement and evaluation of clinical trials testing the
safety and efficacy of natural medicines.
The UNC Center for Education and Research in
Therapeutics (CERTs) is one of seven funded in the U.S.
this year. This initiative is part of our national health
strategy to achieve optimum use of drugs and devices in
the U.S. by providing funds for research that would fall
outside the scope of the National Institutes of Health or
the pharmaceutical industry. Other Centers are located at
In collaboration with the School of
Medicine (Gene Therapy Center and
Department of Pharmacology), faculty
in the School of Pharmacy are part of
an NIH grant totaling $4 million over
five years to advance the use of genes
as therapeutic agents.
✷✼ ✐❢  ❥✇❢
❥✉! ❣ ❖
✉✐ ❉❜
❥ ❜ ❜✉ ❉✐❜ ❢ ❥
Harvard, Duke, Vanderbilt, University of Pennsylvania,
Georgetown University, and University of Alabama at
Birmingham. The UNC Center is focused on conducting
research and developing educational programs for practi-tioners
who prescribe, administer, and dispense medica-tions
for children.
Banks D. Kerr Hall, a 65,000 square foot addition to the
Pharmacy Building will double current space and provide
much needed laboratory, classroom and office space.
This project should be completed during the next 16
months, at a cost of approximately $24 million, and dra-matically
improve our ability to serve the people of North
Carolina.
SCHOOL OF PUBLIC HEALTH
The School of Public Health is actively engaged in con-tinuing
and expanding its tradition of excellence in teach-ing,
research, practice, and service. Highlights from 1999-
2000 include:
The UNC-CH School of Public Health was ranked the
nation’s top school of public health at a public university
by US News and World Report magazine, and was third
overall after Johns Hopkins and Harvard Universities.
The School launched in August the North Carolina
Institute for Public Health, a major service initiative that
links faculty, students, and staff with the public health
practice community. One of its first endeavors was to
provide significant technical assistance and leadership
support to help North Carolina recover from the ravages
of Hurricane Floyd.
The University established this year the Drinking Water
Research Center in the School of Public Health. This
Center draws on expertise in chemistry, economics, engi-neering,
epidemiology, microbiology, risk assessment, and
water policy, and brings existing drinking water-related
research and service efforts at Carolina under a single
umbrella.
The Barbara Sorenson Hulka Distinguished Professorship
in Cancer Epidemiology was established this year through
the generosity of Dr. Hulka. This professorship will allow
the School to recruit to its faculty a senior scholar and
researcher of international distinction who will further
strengthen the cancer research program at UNC-Chapel
Hill.
The American Institute for Cancer Research
Distinguished Professorship in Cancer, Nutrition, and
Prevention was created in the School’s Department of
Nutrition. This professorship will forge crucial links
among the School of Public Health, the School of
Medicine, and the Lineberger Comprehensive Cancer
Center.
The Program on Health Outcomes, a university-wide pro-gram
housed in the School of Public Health, received
$1.5 million from the Glaxo Wellcome Foundation to pro-vide
core support over the next three years. The
Program also received a three-year $1.98 million grant to
establish the first of seven federally supported Centers for
Education and Research on Therapeutics.
The School’s 22nd Annual Minority Health Conference,
“Public Health 2000: Reflections on the Past, Directions
for the Future,” drew a record crowd of more than 500
students, researchers, practitioners, and educators in pub-lic
health and human services.
The first 98 public health practitioners graduated in May
from the Management Academy for Public Health, a
groundbreaking initiative of the School of Public Health
and the Kenan-Flagler Business School to strengthen the
management capacity of local and state health depart-ments
in Georgia, North Carolina, South Carolina, and
Virginia.
Architects are working with School officials to finish the
last design details for our new public health laboratory
building. We have received all required University and
State approvals and look forward to breaking ground in
the coming fiscal year. This building will house vital
research and training activities in environmental sciences
and engineering, epidemiology, and nutritional biochem-istry.
The UNC Program on Health Outcomes, the Cecil B.
Sheps Center for Health Services Research, and the UNC
Schools of Public Health and Medicine anticipate receiv-ing
an award to become a federally supported Center of
Excellence on Overcoming Racial Health Disparities.
This Center will conduct research and service projects
directed at reducing health disparities and training the
next generations of minority health affairs students.
✷✿✿✿ 1 ✸✶✶✶ H i g h l i g h t
The School’s 22nd Annual Minority
Health Conference, “Public Health
2000: Reflections on the Past,
Directions for the Future,” drew a
record crowd of more than 500 stu-dents,
researchers, practitioners, and
educators in public health and
human services.
❉ #
❢✐❢ ❥✇❢ ❇ ✈❜ ❥ ❜ ❞❥❜ ❙❢
✉ ✷✽
UNIVERSITY LIBRARIES
❢ ❜ ✉ ✐ ❚ ❞ ❥ ❢ ❞ ❢ - ❥ ❝
❜
!
Improved Services
HSL opened the User Services Center, the library’s single
service point, which reduces the number of places users
need to go to obtain services. A program featuring
Enriqueta Bond, Burroughs Wellcome Fund President,
marked the opening.
HSL automated more of the interlibrary lending and bor-rowing
functions. Documents can be scanned, emailed
and received in digital form. Users can input and track
the status of their requests online. The library has com-pletely
eliminated paper forms for processing interlibrary
loans. Average turnaround time for requests has dropped
from 11 days to 4 days.
UNC-CH alumni have a new web site of library services
and health-related information, selected especially for
them by HSL librarians using established quality criteria.
The page is on the HSL web site (www.hsl.unc.edu).
Expanding Service to North Carolina Communities
The Area Health Education Centers (AHEC) Digital
Library reached prototype stage. The Health Sciences
Library is leading the development of this new service.
Primary health care providers throughout the state, hospi-tal
residents, and students on rotation in community
teaching sites have access to core information and library
services through the AHEC Digital Library. The AHEC
Digital Library plans eventually to reach all health profes-sionals
in the state, with a $400,000 grant received from
the Duke Endowment.
The three campus libraries hired the first campus-wide
Distance Education Specialist with funds from the state
legislature. Library distance education services include
information help from librarians, electronic reserves,
information skills tutorials, and access to articles. These
services reached students across North Carolina and the
world this year. Some state locations include: Asheville,
Cullowee, Gastonia, Hickory, Laurinburg, New Bern,
Roanoke Rapids, Silva. Even students in multi-campus
programs such as the curriculum in Speech and Hearing,
are obtaining improved library service and materials as
faculty receive help from campus libraries in support of
their distance education courses.
Serving New Populations
HSL staff collaborated with Duke Medical Center Library
staff to create an Evidence Based Medicine online tutori-al.
Organizations have requested permission to link to this
module from their web sites or to translate the module
into Spanish.
The library hosted 24 course-integrated instructional ses-sions
for 483 undergraduate students. Librarians help stu-dents
find information at both consumer and professional
levels by providing instruction on choosing databases,
search terms and techniques, evaluating web resources,
and selection and use of full text articles. Students are in
biology, English, physical education, and journalism cur-ricula.
HSL librarians helped teach 110 public and community
college librarians in North Carolina how to find health-related
information resources and use them to answer
questions from the public. HSL librarians developed the
course materials and AHEC librarians and HSL librarians
taught the sessions.
❇ ❞ ❜ ❡ ❢ # ❥ ❞ ❇ ❣ ❣ ❜ ❥
- ❥ ❝
❜
!
During 1999-2000, the Academic Affairs Library sus-tained
our commitment to ongoing services and tradition-al
collections, while also developing innovative programs
and collections which reflect and will help to shape the
digital environment.
Five Millionth Volume
In February, the Libraries celebrated the acquisition of
our five millionth volume, contained in a collection of
1,200 volumes of William Butler Yeats. The collection
was given by the Hanes family of Winston-Salem, contin-uing
a family tradition of donating each of the Library’s
milestone millionth volumes. The acquisition was facilitat-ed
by the creator and owner of the collection, Professor
George Harper, former Chair of the UNC-CH English
Department, who donated a significant portion of his
related materials. The Yeats collection will add greatly to
the Academic Affairs Library’s growing strengths in
Anglo-Irish literature.
Expanded Access to Electronic Information and Services.
The Libraries continued to extend access to electronic
information in a variety of ways, including, but going
well beyond, the purchase and licensing of information
in electronic form. During the year, the Library began
In February, the Libraries celebrated
the acquisition of our five millionth
volume, contained in a collection of
1,200 volumes of William Butler Yeats.
✷✾ ✐❢  ❥✇❢
❥✉! ❣ ❖
✉✐ ❉❜
❥ ❜ ❜✉ ❉✐❜ ❢ ❥
routinely adding Federal Government Documents to the
online catalog, facilitating the retrieval and use of these
unique resources. A “Borrower Self-Service” feature was
introduced, permitting patrons to view their charged-out
items and, in most cases, to renew them. A new interli-brary
borrowing request program was implemented,
allowing patrons to request and track items via a Web
form.
Documenting the American South
In April, the Academic Affairs Library’s Documenting the
American South digitization project
(http://ibiblio.unc.org/docsouth/) was recognized by the
Southeastern Library Network (SOLINET) as the
“Outstanding Library Program” of 2000 in the
Preservation and Electronic Information category. The
DAS project brings Southern history, literature, and cul-ture
to the World Wide Web with contents which include
the searchable full-text of over 600 monographs, along
with images of illustrations, manuscript items, maps, cur-rency,
letters, broadsides, and other materials.
Support for Teaching and Learning
Pursuant to the recommendations of a 1999 internal
report, the Academic Affairs Library is expanding pro-gramming
to increase support for campus teaching and
learning needs. As the first major step toward realizing
these goals, the Library created the new position of
Coordinator for Instructional Services, who will provide
leadership, direction, and planning in this area. The
Coordinator for Instructional Services began work on
September 1, 2000, and will collaborate with faculty and
librarians to identify ways in which the Library can best
help students and others learn to make effective use of
the many resources available to them. Two new instruc-tional
labs were built in Davis Library this year, featuring
43 hands-on workstations. These facilities will improve
the Library’s instructional activities by providing a more
interactive learning environment.
Development
The Library’s preliminary case statement outlining objec-tives
for the University’s upcoming Carolina First
fundraising campaign incorporates four goals: to maintain
our ranking on the Association of Research Libraries
Index as the best general research library in the
Southeast; to expand and enhance our special strengths
in Southern resources; to create a new center of excel-lence
in undergraduate library services by developing an
innovative program that will be a model for the nation;
and to improve and expand the collections and technolo-gies
to support existing and emerging science programs
across the campus in concert with the Health Sciences
Library. We will seek a total of $35 million in funding to
meet these objectives.
GRADUATE STUDIES AND RESEARCH
Graduate Studies and Research is comprised of the
Graduate School, the Odum Institute for Research in
Social Science, the Office of Research Services, the
Proposal Development Initiative, the Office of
Technology Development, the Office of Information
and Communications and the Office of Economic
Development. The Office of the Vice Provost for
Graduate Studies and Research oversees each of
these units.
During 1999-2000, the University received a record
$376.5 million in grants and contracts, an increase of $32
million over the previous year. The Office of Technology
Development expanded its activities related to its mission
of commercializing UNC-CH inventions. During 1999-
2000, OTD filed over 76 U.S. patent applications, an
increase of 25 percent over last year. In addition, 37 new
U.S. patents were issued during the fiscal year. OTD also
introduced a new electronic Materials Transfer
Agreement and has seen a number of companies previ-ously
licensed through OTD reach important commercial
milestones (e.g., Immtech International Inc, Hangers
Cleaners, Inspire).
The Office of Research Services has taken the lead in
developing the University’s response to new rules for
protection of Human Subjects and continued its steady
progress toward electronic research administration
with phase one of the Coeus system introduced on
July 1, 2000.
Other highlights of the Office for Graduate Studies and
Research include initiation of a cooperative efforts
between the Office of Information and Communications
and the Alumni Office which will result in over a threefold
increase in individuals receiving copies of our research
magazine, Endeavors. As a result of this initiative, all life
members of the UNC General Alumni Association (GAA)
will receive a copy of Endeavors along with regular
copies of the Alumni Magazine. This will increase read-ership
from approximately 9,000 to 34,000.
The Proposal Development Initiative continues to assist
in bringing recognition to our faculty by nominating them
✷✿✿✿ 1 ✸✶✶✶ H i g h l i g h t
The Office of Research Services
has taken the lead in developing
the University’s response to new
rules for protection of Human
Subjects and continued its steady
progress toward electronic research
administration with phase one of
the Coeus system introduced on
July 1, 2000.
❉ #
❢✐❢ ❥✇❢ ❇ ✈❜ ❥ ❜ ❞❥❜ ❙❢
✉ ✷✿
for national awards. In 1999-2000, faculty at UNC-CH
received the following awards that were initiated through
the Proposal Development Initiative: William T. Grant
Faculty Scholar award; Camille Dreyfus Teacher-Scholar
Award; Pew Scholar Award; Carnegie Fellow Award;
Ellison Medical Foundation New Scholar Award;
Burroughs Wellcome Fund Innovation Award and
Burroughs Wellcome Fund Career Award.
The Graduate School expanded support for graduate stu-dents
in order to meet its mission of recruiting the most
exceptional students to Chapel Hill. A new multidiscipli-nary
top-up fellowship for students in social and human
sciences was initiated with private funds. Funds for the
Royster Society of Fellows have grown and as a result 32
students received Royster fellowships during the
1999–2000 academic year. In addition, the Graduate School
has developed a series of courses and programs to provide
professional development opportunities for graduate stu-dents.
Progress within the Odum Institute for Research in Social
Science has included the appointment of a new director,
Dr. Kenneth Bollen and new research initiatives related to
the consequences of Hurricane Floyd.
OFFICE OF SCHOLARSHIPS
AND STUDENT AID
The Office of Scholarships and Student Aid concentrated
its effort on improving systems and operations, streamlin-ing
delivery of aid and strengthening client services. In
total, over $106 million was awarded and delivered to
over 11,000 undergraduate and graduate/professional
students.
Staff spent considerable time assessing the projected
impact of proposed 2000-2001 tuition and fee increases
on needy undergraduate, graduate, and professional stu-dents.
This process encompassed a comprehensive
review of national literature on the effects of tuition
increases on needy students nationally, and the applica-tion
of those findings to UNC-CH students. As a result,
the University reaffirmed its policy of “holding needy stu-dents
harmless” from 2000-2001 tuition increases, dollar-for-
dollar. Commitment to providing access to education
for students who need financial assistance continues to be
a priority, as evidenced by University policies and practice.
As part of the Carolina Computing Initiative, any student
enrolling in 1999-2000 could borrow funding for the pur-chase
of a laptop at 6.32% interest — the same rate
afforded students under subsidized federal need-based
student loans. The computer loans were made available
through Student Stores, and financed by the College
Foundation, Inc. In the spring of 2000, staff notified
nearly 1100 financial aid-eligible freshmen (class of 2004)
that they would receive a laptop grant ranging from a
minimum of $500 to a maximum of $2,300 to cover the
cost of a laptop. The University provided the funding for
the laptop grants, ensuring that needy students would not
be harmed by the CCI requirement that all incoming
freshmen own a laptop.
The Office contracted with Scannel and Kurz, Inc. for an
evaluation of the effectiveness of financial aid packaging
policies in attracting students of superior academic ability
through the offer of both need-based and merit-based aid
and scholarships. The findings of this study will be used
in support of the University’s current and long-range
recruitment, retention and enrollment goals.
The Office significantly increased the number of National
Merit Scholarship winners for a second year in a row.
This increase was brought about by the University’s
decision in 1998 to enter the National Merit Scholarship
Program as an institutional sponsor. The University
pledged the proceeds of a major estate to fund this
initiative; when fully phased in annual funding will total
$600,000. During the 1999-2000 academic year, 132
students received the National Merit Scholarship award,
up 33% over the prior year.
Successful development efforts resulted in the availability
of more academic scholarships. The addition of these
academic scholarships enhances the University’s ability to
recruit and enroll the most talented students in the state
and nation. Development efforts continue for academic
scholarships, with the expectation that the number of
available academic scholarships will continue to increase
each year.
The Office benefited from a major renovation of Vance
and Pettigrew Halls, which significantly improved the
appearance of the office and the quality of services pro-vided
to students.
INFORMATION TECHNOLOGY SERVICES
The University’s Information Technology Services divi-sion
implemented the highly successful Carolina
Computing Initiative (CCI). This initiative creates an infra-
The University’s Information
Technology Services division
implemented the highly successful
Carolina Computing Initiative (CCI).
This initiative creates an infrastruc-ture
that enables new instructional
models and new interactions
between faculty and students.
✸✶ ✐❢  ❥✇❢
❥✉! ❣ ❖
✉✐ ❉❜
❥ ❜ ❜✉ ❉✐❜ ❢ ❥
structure that enables new instructional models and new
interactions between faculty and students. Students are
no longer tied to classrooms and libraries, but have
access to faculty and instructional materials wherever
they may be. The CCI continues to be ahead of schedule
and slightly under budget. To date, the campus has pur-chased
over 13,000 computers for faculty and staff
through the IBM contract, resulting in substantial savings
to the University. The Center for Instructional
Technology’s seminars helped faculty to create over 400
online course web pages for their classes, while over
3,100 CCI freshmen participated in Carolina Testing &
Orientation Program Sessions (CTOPS) training. To sup-port
these technology users, a computer repair center
was established in the Information Technology Response
Center (ITRC), and a new call center service was installed
for better management of incoming calls and to facilitate
problem tracking and resolution. The ITRC uses the
Remedy Problem Tracking System, which provides a way
to record and track technical problems and allows us to
generate statistics regarding the types of technical prob-lems
reported, and the resources required to address
them. The system allows customers to report issues by
telephone, internet, email, or in person.
The success of the CCI depends on a solid data commu-nications
infrastructure. The University has made signifi-cant
progress in implementing a campus-wide utility
model for data networking, from the wallplate to the
Internet. ITS projects have improved network capacity
throughout campus, provided wireless Internet connec-tion
capability to selected departments, classrooms, and
libraries, provided Ethernet connections for every student
in campus residence halls, and upgraded the connection
to MCNC to provide higher speed and increased function-ality
to the North Carolina Research and Education
Network (NCREN), the Internet and Internet2. The cam-pus
fiber optic network will continue to be reconfigured
and expanded to meet demand.
ITS has expanded the critical services of electronic mes-saging,
instructional technology, and research computing
offerings, added web-based e-mail access, and imple-mented
a significant Oracle database service to meet the
demands for research and web database services, increas-ing
the capacity of its mass storage facility from 7 to 125
terabytes. The Control Center now operates an on-line
Service Monitoring System, tracking the UNC Data and
Video Network and critical email, web, and research serv-ices
systems 24 hours a day. The Control Center web site
(http://control-center.oit.unc.edu) keeps the UNC com-munity
informed of the status of essential computing
services.
The Year 2000 Project Office worked diligently to ensure
that all systems were year 2000 ready and that no hard-ware
or software date problems would interfere with
University business. These efforts were a complete
success. There were no material interruptions in
University services.
Information Technology is not only one of the driving
factors in the “new economy,” but it is also evident in
many initiatives to re-engineer campus business process-es.
Information Technology in the process of education,
implemented on this campus through the highly success-ful
Carolina Computing Initiative (CCI), is only a part of
the overall picture. This initiative creates opportunities for
new instructional models and new interactions between
faculty and students, but it also enables the University to
improve processes that are crucial to the support of the
learning process.
For example, the University is licensing the Coeus system
from the Massachusetts Institute of Technology, to assist
in the pre-award and post-award management of spon-sored
programs. The objective is to simplify and stream-line
award acquisition and administration throughout the
university. Currently, university proposals are being
tracked through Coeus. College of Arts and Sciences
departments can use this application with computers dis-tributed
through the CCI.
Receipt of funding is only part of the equation in using
sponsored research programs. In addition to the tools that
Coeus will ultimately offer for post-award management,
the University has made other strides in making timely
information available to department managers. InDEPTh
is a departmental management system designed to meet
the specific financial needs of departmental managers at
all levels. Managers can create and route documents for
approval, post and receive notifications for information or
required actions, view up-to-the-minute budget balances,
develop and maintain budget projections, post cash
entries, make payment requests and more. InDEPTh is
fully integrated with the Financial Records System (FRS),
eliminating duplication of data entry.
Since FRS is still a core part of the University’s
Information Technology architecture, we use technologi-cal
advancements such as the CCI to help improve both
the usability and timeliness of its information. E~Print is
✷✿✿✿ 1 ✸✶✶✶ H i g h l i g h t
The Year 2000 Project Office worked
diligently to ensure that all systems
were year 2000 ready and that no
hardware or software date problems
would interfere with University busi-ness.
These efforts were a complete
success. There were no material inter-ruptions
in University services.
❉ #
❢✐❢ ❥✇❢ ❇ ✈❜ ❥ ❜ ❞❥❜ ❙❢
✉ ✸✷
a new software product that enables the University to dis-tribute
reports via the Web. The Web presentation of
these reports eliminates the need to print the reports,
usually 40,000 to 50,000 pages for monthly reports alone.
The e~Print product uses FRS value-based security to
enable viewing of financial reports by only those author-ized
to see the data, and defines more general access to
commonly available reports. If needed, e~Print reports
on the Web can be printed on the customer’s local printer.
Improvements in delivery of information are now supple-mented
with the ability to take electronic action to effi-ciently
use financial resources. The FRS Inbox application
allows users to send an electronic request for Flexible
Budget Transfer (FBT) from their department through a
number of approvals to the Budget Office, which can
approve it, so that the transactions needed for that trans-fer
are automatically posted in FRS. For any person on
campus who has been defined to the system, the Inbox
shows the list of forms either waiting for their approval,
or that they have created. The routing path (i.e., the dif-ferent
approvals a form must pass) can be set by the vari-ous
Deans or Vice Chancellors and maintained by
Financial Systems Support. Once defined, all FBTs are
routed sequentially down the set path with the exception
that an approver may be skipped if specific predeter-mined
criteria are met. For example, a Dean may opt not
to see/approve FBTs that involve non-personnel salary
accounts. This is accomplished by attaching business
rules to each department in the approval routing
path/hierarchy.
OFFICE OF UNIVERSITY ADVANCEMENT
Carolina donors gave the University $165.7 million in gifts
and private grants for the benefit of the University in fis-cal
year 1999–2000, making it the best fund-raising year
in Carolina’s 207-year history. The fiscal 2000 tally is up
12 percent from 1999’s total, and it marks the ninth
straight record-breaking year for private giving to
Carolina. The University has now topped $100 million in
gifts and private grants for four consecutive years.
The changing landscape of higher education makes pri-vate
gifts more critical than ever to maintaining excel-lence,
and Carolina’s strong network of alumni, friends,
employees and students are answering the call. More
than 57,000 donors contributed to the University in fiscal
year 1999-2000. Of the $165.7 million total, 91 percent
— $151.7 million — was designated for academics, while
athletic programs received $14 million.
Carolina encourages donors to direct their support to
schools, programs and research initiatives that are per-sonally
meaningful. The gifts come in many forms,
including cash, stock, property, trusts, annuities, bequests
and endowment gifts.
In fiscal year 1999-2000, Carolina’s total endowment
crossed the $1 billion milestone, putting the University in
elite company nationwide. Endowment funds are impor-tant
to Carolina because they provide a reliable and per-manent
source of support for students, faculty
and programs.
The impact of private giving resonates throughout the
campus. It enhances the University’s intellectual climate
by providing an advantage in recruiting and retaining the
best faculty and the brightest students. It supports
groundbreaking research in medicine and the sciences. It
even funds construction of new learning spaces on cam-pus.
Private gifts enrich the Carolina experience, creating
a margin for excellence otherwise unachievable.
Fiscal year 1999-2000 produced a shining example of
philanthropy’s power. Julian and Josie Robertson gave
$24 million to Carolina and Duke University to establish a
pioneering new scholarship program in the two schools.
Their gift, the largest ever by living individual donors to
Carolina, creates a collaborative program that will recruit
and support extraordinary undergraduate students who
will study at both campuses. The Robertson Scholars will
be expected to cross historical barriers and forge new
links between the universities. Julian Robertson, who
grew up in Salisbury and earned a business degree from
Carolina in 1955, is a legendary stock picker and former
hedge-fund manager in New York. The Robertsons have
one son who graduated from Duke and another currently
enrolled at Carolina.
For the 1998-1999 fiscal year—the latest for which com-parative
figures are available for all U.S. research universi-ties—
Carolina ranked 24th in total gifts and private grants
among the nation’s leading research universities, includ-ing
both public and private institutions. Carolina has
steadily improved its ranking over the last decade, making
substantial gains in a highly competitive environment.
The University’s fund-raising successes have earned high
praise from the Council for the Advancement and Support
of Education (CASE), an international association that
promotes support for education. CASE recognized
Carolina with its Circle of Excellence Award for Overall
Fund-raising Performance in 1999, distinguishing Carolina
Gifts for undergraduate scholarships
totaled $17.8 million in fiscal year
1999-2000 — an increase of more
than 150 percent from 1998-1999.
(The $12 million gift from Julian and
Josie Robertson accounts for much of
this increase.)
✸✸ ✐❢  ❥✇❢
❥✉! ❣ ❖
✉✐ ❉❜
❥ ❜ ❜✉ ❉✐❜ ❢ ❥
as the only six-time winner among public universities.
Harvard and Duke are the only private institutions to
have won the award six times.
In fiscal year 1999-2000, 44,950 Carolina alumni (23 per-cent)
gave back to the University. A record number of
donors—2,989—made Chancellors' Club-level gifts to
Carolina. The total reflects a 6 percent increase over fis-cal
year 1998-1999's record-breaking total, and it includes
an 8 percent increase in young alumni members of the
Chancellors' Club to 444. Young alumni are Tar Heels
within 15 years of graduation (classes of 1986 through
2000). As potential fund-raising leaders and donors, they
are vital to Carolina's future and are encouraged to give
annually. Young alumni can join the Chancellors' Club at
special gift levels, beginning with a $250 gift for alumni
within 5 years of graduation and rising to $1,000 for
alumni 10 to 15 years out of school. Fiscal year 2000
was the fifth full year of operation for the young alumni
giving program, and more than 9,200 young alumni gave
$1,249,166.
Corporations, foundations and organizations made gifts
and grants to the University totaling $90.4 million for aca-demic
purposes in fiscal year 2000. This marks a 16 per-cent
increase over fiscal year 1999. The Class of 2000
senior gift campaign generated $35,813 from 952 class
members and parents. Seniors chose to support a variety
of schools and units with their gifts, but the majority of
these gifts were designated to create the Class of 2000
Senior Room in the expanding Frank Porter Graham
Student Union.
Carolina's web site is an emerging vehicle for giving to
Carolina. In fiscal year 1999-2000, more than 200 alumni,
students and friends used the University's web site to
make credit card gifts. Gifts made over the web in fiscal
year 1999-2000 totaled $38,360 -- an increase of more
than 200 percent over fiscal year 1998-1999. Parents of
Carolina students gave $15.8 million to the University in
fiscal year 1999-2000. Of that total, Carolina alumni par-ents
Julian and Josie Robertson gave $12 million, and
other alumni parents made gifts totaling $2.1 million.
Non-alumni parents gave $1.7 in fiscal year 1999-2000.
The University's development program for parents is now
entering its third year of operation. In each of its first
two years, the program has generated dramatic increases
in giving by parents.
Active and retired faculty and staff are generous donors
to the University. In fiscal year 1999-2000, almost 2,000
employees gave more than $1 million to benefit a wide
range of departments, schools and units. In fiscal year
1999-2000, the phonathon's student callers contacted
69,663 people, receiving 33,599 pledges totaling
$1,940,084. More than 250 student callers worked for the
phonathon in 2000, making it one of the largest student
employers on campus. The phone program combined
with the mail program to generate nearly $4 million for
Carolina -- a 9 percent increase over the programs' totals
in fiscal year 1998-1999.
The University received $7.2 million from 47 estates in
fiscal year 1999-2000. The University booked life-income
gifts with a fair market value of $5.9 million. Life-income
gifts include gift annuities and charitable remainder trusts,
arrangements by which donors give an asset now but
receive income, based on the asset's value, for the rest of
their lives. Upon the income beneficiary's death, Carolina
uses the gift for the purpose the donor specified. Fiscal
year 1999-2000 heralded the kick-off of Carolina's
bequest program, resulting in a dramatic increase of doc-umented
bequests.
Tar Heels across the nation were generous in fiscal year
1999-2000, and many regions posted increases in giving.
About 300 volunteer National Development Council and
Chancellors' Club members organized, hosted and attend-ed
many events from New York to Los Angeles and
points in between, including Chancellors' Club events and
the NDC annual meeting in Chapel Hill. To increase con-tact
with Carolina's alumni and friends across the nation,
the regional giving program added three major-gifts offi-cers
to their ranks in fiscal year 1999-2000.
In fiscal year 1999-2000, 557 Carolina alumni and friends
made gifts of stock to the University totaling $18.6 mil-lion
-- a 25 percent increase over fiscal year 1998-1999's
total. The last decade has fostered a rising trend of stock
gifts to Carolina. Many Chancellors' Club members make
their annual gifts via stock. Many donors also use stock
to make major gifts or installments on major gift pledges.
Gifts for undergraduate scholarships totaled $17.8 million
in fiscal year 1999-2000 -- an increase of more than 150
percent from 1998-1999. (The $12 million gift from
Julian and Josie Robertson accounts for much of this
increase). Gifts for graduate fellowships totaled $4.7 mil-lion
in fiscal year 1999-2000. Gifts for professorships
increased 25 percent from fiscal year 1998-1999. Fiscal
year 1999-2000's $10.2 million total reflects a new focus
on endowed professorships spurred in recent years by the
✷✿✿✿ 1 ✸✶✶✶ H i g h l i g h t
The 2000 General Assembly
placed a $3.1 billion higher edu-cation
improvement bond referen-dum
on the November ballot.
Thanks to the generous support of
state voters – more than 70 percent
endorsed the referendum – the
University will receive nearly $500
million in bond money over six
years to help us begin to address
our capital needs.
❉ #
❢✐❢ ❥✇❢ ❇ ✈❜ ❥ ❜ ❞❥❜ ❙❢
✉ ✸✹
state of North Carolina's matching funds provided
through the Distinguished Professors Endowment Trust
Fund.
Capital gifts -- gifts for buildings and long-lived equipment
-- totaled $12.9 million in fiscal year 1999-2000.
Highlights of the year include the rededication of Graham
Memorial as the home of the Johnston Center for
Undergraduate Excellence, a project funded entirely by
private gifts, and the groundbreaking for a new Institute
for Arts and Humanities building, also funded privately.
STUDENT AFFAIRS
Carolina’s efforts to enhance its intellectual climate
extended well outside the classroom and into the Student
Affairs arena. Freshmen and transfer students, for exam-ple,
participated in a new summer reading program to
give them a common basis of discussion. Freshmen also
had the opportunity be part of the new First-Year
Initiative Living-Learning Program. Some 150 students
opted to live in designated housing that featured special
programming to introduce them to the academic and
local communities in small groups led by Faculty
Associates. Feedback from both efforts was overwhelm-ingly
positive.
As the university prepared for an anticipated influx of
new students over the next decade, Student Affairs
focused on where to house them. Planning moved for-ward
for construction of four new low-rise residence
halls, a $42 million project on the southern part of cam-pus,
slated to open in fall 2002.
A step ahead of the residence hall project is the expan-sion
and renovation of the Frank Porter Graham Student
Union. The more than $13 million project, which broke
ground in the spring, will more than double office space
for student organizations by adding 38,000 square feet to
the Union. The existing 80,000-square-foot facility also
will be renovated after the new addition is completed.
Alcohol education continued to be a Student Affairs
focal point. In August we announced the results of a first-in-
the-nation breathalyzer study involving 1,800 UNC-CH
students returning home to both on and off campus stu-dent
housing between 10 pm and 2 am. . The study, con-ducted
by the UNC Highway Safety Research Center,
found that on average nearly three-quarters of students
returning home had no alcohol in their bloodstream –
debunking popular misperceptions of the prevalence of
student drinking. The results were used in a promising
new alcohol intervention technique called social norming,
designed to acquaint new students with actual rates of
alcohol use, since students generally perceive use of alco-hol
to be about 20% higher than it actually is. .
Students also reaped the benefits of the new Counseling
and Psychological Services, part of Student Health
Services. Created by combining the former University
Counseling Center and Student Psychological Services,
the new program offers more efficient one-stop service.
ADMINISTRATION
The University undertook a review of its budget practices
to identify campus-wide priorities and to refine the budg-et
process to reflect these goals. The result is a much
clearer, more understandable and responsive system that
worked well as we planned for the 2000-2001 budget year
and the legislative session for the 2001-2003 biennium.
Business and finance and government relations officials
spent a great deal of time on Carolina’s capital needs.
When the 1999 General Assembly did not reach consen-sus
on a plan to help the state’s public universities and
community colleges finance renovations, repairs and
new construction, the University began to more exten-sively
document our needs and share them with the
public and our legislators. Consultant Eva Klein, hired by
the legislature to review facilities needs for UNC system
campuses, cited some $1.5 billion in capital needs at our
campus alone.
The 2000 General Assembly placed a $3.1 billion higher
education improvement bond referendum on the
November ballot. Thanks to the generous support of state
voters – more than 70 percent endorsed the referendum –
the University will receive nearly $500 million in bond
money over six years to help us begin to address our
capital needs.
As the University considered renovations to its existing
facilities and construction of new ones, we also moved
forward with our campus master-planning effort. The
plan, which will guide future development on the main
campus, is scheduled for presentation to the Board of
Trustees for approval in January 2001. On a related mat-ter,
a special task force continued to explore potential
uses of some 950 undeveloped acres at the Horace
Williams property. Future development of this land will
As a recipient of federal financial
awards, the University is responsi-ble
for ensuring compliance with all
applicable laws and regulations relat-ing
to such assistance. A combination
of State and University policies and
procedures, integrated with the
University’s system of internal con-trols,
provides for this compliance.
✸✺ ✐❢  ❥✇❢
❥✉! ❣ ❖
✉✐ ❉❜
❥ ❜ ❜✉ ❉✐❜ ❢ ❥
play a major role in complementing the core academic
activities on the main campus.
Pedestrian safety on campus became a focus after the
tragic death of a post-doctoral fellow last fall. A commit-tee
chaired by University Police Chief Derek Poarch
worked with representatives from the N.C. Department of
Transportation and the Town of Chapel Hill and others to
identify ways to make the campus safer for pedestrians.
Increased signage, signalized crosswalks and traffic
islands are among the many improvements being imple-mented.
In addition, our Public Safety Department
received a three-year grant to create a squad dedicated to
pedestrian safety. Also, a pedestrian safety committee was
created to continue to monitor this issue and to recom-mend
future steps.
In December, after a three-year examination, the
University successfully concluded a comprehensive audit
by the Internal Revenue Service, part of a broader review
of U.S. universities.
Our Division of Human Resources spent much of the
year preparing and implementing the first phase of a new
human resource information system, which will improve
processing and reporting of information about staff and
faculty. Human Resources also managed significant per-sonnel
changes related to the creation of the UNC Health
Care System. In the past year, some 750 employees were
moved from the University’s payroll to that of the Health
Care System, completing organizational changes
approved by the 1998 General Assembly.
I’m pleased to report that thanks to extraordinary plan-ning
by our Information Technology and Physical Plant
staffs, Carolina smoothly sailed into the year 2000 with no
technical glitches. Our technology staff did an outstand-ing
job negotiating a cost-saving new software licensing
agreement with Microsoft. The agreement is expected to
save the University more than $100,000 per year and ben-efit
at least 10 other UNC system schools.
The University also was delighted with the addition of the
Carolina Inn to the National Register of Historic Places in
recognition of its historic and architectural significance.
ATHLETICS
Our athletic program finished in the top 10 in the annual
Sears Directors’ Cup competition for overall athletic
excellence for the sixth time in seven years. We finished
in fifth place, just a point behind Penn State and 2.5
points ahead of Nebraska.
The Carolina men’s basketball team reached the NCAA
Final Four for the sixth time in the last 10 years. Head
Coach Bill Guthridge also announced his retirement in
late June.
The women’s soccer team won its 16th national champi-onship
in the past 19 years. The Carolina team now has
won 29 national championships.
The Tar Heels also won Atlantic Coast Conference cham-pionships
in women’s soccer, women’s cross country, vol-leyball,
women’s swimming and diving, women’s indoor
track and field, and wrestling. Carolina tied with Duke to
lead the ACC in 1999-2000 with six conference titles each,
marking the 13th successive year we won or tied for the
number of ACC championships. We have won 215 cham-pionships,
more than any other school in the conference.
Our student-athletes also preformed as well in the class-room.
Two hundred and forty were named to the 1999-
2000 ACC Academic Honor Roll for maintaining a grade-point
average of 3.0 for the school year. UNC-CH ranked
second in the number of students on the list.
Financial Information
INTERNAL CONTROL STRUCTURE
The Business and Finance Division of the University is
responsible for establishing and maintaining an effective
system of internal control. The objectives of an internal
control structure are to provide management with reason-able,
although not absolute, assurance that assets are
safeguarded against loss from unauthorized use or dispo-sition,
and that transactions are executed in accordance
with appropriate authorization and recorded properly in
the financial records to permit the preparation of finan-cial
statements in accordance with generally accepted
accounting principles. Accordingly, organizational struc-ture,
policies, and procedures have been established to
safeguard assets, ensure the reliability of accounting data,
promote efficient operations, and ensure compliance with
established governmental laws, regulations and policies,
University policies, and other requirements of sponsors to
whom the University is accountable.
✷✿✿✿ 1 ✸✶✶✶ H i g h l i g h t
Our athletic program finished in the
top 10 in the annual Sears
Directors’ Cup competition for overall
athletic excellence for the sixth time in
seven years. We finished in fifth place,
just a point behind Penn State and 2.5
points ahead of Nebraska.
As a recipient of federal financial awards, the University
is responsible for ensuring compliance with all applicable
laws and regulations relating to such assistance. A com-bination
of State and University policies and procedures,
integrated with the University’s system of internal con-trols,
provides for this compliance. As an integral part of
the State of North Carolina’s Single Audit, the University
undergoes an annual examination by the Office of the
State Auditor of its federal financial assistance programs
in accordance with U. S. Office of Management and
Budget Circular A-133, Audits of State and Local
Governments.
BUDGETARY CONTROLS
The University is responsible for controlling its budget
and using the funds to fulfill its educational and other
missions and also for planning, developing, and control-ling
budgets and expenditures within authorized alloca-tions
and in accordance with University, State, and federal
policies and procedures. The University maintains budg-etary
controls to ensure compliance with provisions
embodied in the annual appropriated budget approved by
the North Carolina General Assembly. Project-length
financial plans are adopted for capital projects.
After the budget has been approved by the Chancellor
and the Board of Governors, the University follows an
established system of budgetary controls. Business and
Finance issues periodic interim budget statements to
department heads to guide them in managing their budg-et
allocations. Monthly financial reports are provided on
each fund to individual managers responsible for the fund.
Financial reports are also provided at the State level.
When actual conditions require changes to the budget,
revisions are prepared, and these revisions are appropri-ately
approved and communicated to those affected.
Changes to the budget are approved at the University
level and/or the State level as required. Based on the
State’s management flexibility legislation, the University
has received delegated authority for designated budget
changes.
The University maintains an encumbrance accounting
system as another method to ensure that imposed expen-diture
constraints are observed.
A quarterly budget status report is presented to the Board
of Trustees. The report compares the revenue and
expenditure budgets with actual activity at a summary
level for the current year and the prior year.
CURRENT FUNDS REVENUES AND
EXPENDITURES
In fiscal 2000, the University expended $1.26 billion ful-filling
its mission of instruction, research, and public serv-ice.
Approximately 55.6% of the total expenditures sup-ported
the instruction and research missions of the
University including the academic and student support
functions. Expenditures for the professional clinical serv-ices
which are self-supporting operations providing med-ical,
dental, and other health care were 12.4% of the total.
Other uses of operating resources were for public service
(7.1%); institutional support (3.8%); plant maintenance
and operations (5.5%); student financial aid (4.0%); and
self-supporting auxiliary and related operations (10.1%).
Mandatory and other transfers, and refunds to grantors
accounted for the remainder (1.5%).
Total expenditures of $1.26 billion represent an increase
of 5.7% over the prior year. Instruction, academic sup-port,
and student services increased 5.9% over the prior
year while organized research increased 6.6%. Other
increases included student financial aid (12.5% increase
over prior year), public service (4.5% increase over prior
year), professional clinical services (17.6% increase over
prior year), auxiliary enterprises / internal service (5.2%
increase), and plant maintenance and operations (6.1%
increase from the prior year), while institutional support
expenditures decreased by 17.1%.
Resources of more than $1.29 billion supporting these
expenditures increased 6.5% over the prior year, which
resulted in a $32.8 million increase to the Current Funds
balances. The University has a diversified revenue base
as the largest single source comprises less than one-third
of the resources generated. State appropriations were the
largest single revenue source for fiscal year 2000 (29.5%
of total, 0.2% increase over prior year). Remaining rev-enue
sources were tuition and fees (9.3% of total, 10.1%
increase), governmental contracts and grants (24.7% of
total, 8.3% increase), sales and services and other sources
(24.9% of total, 10.2% increase), nongovernmental con-tracts
and grants (4.4% of total, 3.8% increase), gifts and
bequests (4.1% of total, 24.1% increase), and investment
and endowment earnings (3.1% of total, 0.4% decrease).
❉ #
❢✐❢ ❥✇❢ ❇ ✈❜ ❥ ❜ ❞❥❜ ❙❢
✉ ✸✻
The student headcount of the
University was 24,635 for the Fall
semester of fiscal 2000. Student
enrollment has remained stable over
the last five years, increasing 0.7%.
✸✼ ✐❢  ❥✇❢
❥✉! ❣ ❖
✉✐ ❉❜
❥ ❜ ❜✉ ❉✐❜ ❢ ❥
CURRENT FUNDS
For the year ended June 30, 2000 (in thousands)
Sources $1,299,438
State Appropriations (29.5%) $383,189
Tuition and Fees (9.3%) $121,507
Governmental Contracts and Grants (24.7%) $321,330
Nongovernmental Contracts and Grants (4.4.%) $56,764
Gifts and Bequests (4.1%) $53,484
Sales and Service and Other Sources (24.9%) $323,435
Investment and Endowment Earnings (3.1%) $39,729
Uses $1,260,647
(40.8%) Instruction, Academic Support,
$514,102 and Student Services
$186,550 (14.8%) Organized Research
$89,906 (7.1%) Public Service
$48,165 (3.8%) Institutional Support
$69,525 (5.5%) Plant Maintenance and Operations
$49,844 (4.0%) Student Financial Aid
$127,443 (10.1%) Auxiliary Enterprises and
Internal Service
$156,522 (12.4%) Professional Clinical Services
$18,590 (1.5%) Transfers and Other Deductions
Resources of proprietary funds, which include auxiliary
enterprise, internal service, and professional clinical serv-ice
activities, totaled $321.4 million. The remaining cur-rent
funds resources of $978.0 million support the educa-tional
and general activities of the University and are
summarized as follows (in thousands):
Educational and General Amount % of Total
State Appropriations $383,189 39.2 %
Tuition and Fees 121,507 12.4 %
Governmental Contracts 321,330 32.9 %
and Grants
Nongovernmental Contracts 56,764 5.8 %
and Grants
Gifts and Bequests 52,335 5.3 %
Sales and Services and Other Sources 11,797 1.2 %
Investment and Endowment Income 31,124 3.2 %
Total $978,046 100.0%
The student headcount of the University was 24,635 for
the Fall semester of fiscal 2000. Student enrollment has
remained stable over the last five years, increasing 0.7%.
Student enrollment for fiscal 2000 was composed of the
following categories:
Women 59.3%
Men 40.7%
White 79.2%
African American 9.8%
Other 11.0%
Undergraduate 62.7%
Graduate 28.5%
Professional 8.8%
Resident 75.3%
Nonresident 24.7%
FUND ACCOUNTING
In order to ensure observance of limitations and restric-tions
placed on the resources available to the University,
the accounts of the university are maintained in accor-dance
with the principles of fund accounting. This is the
procedure by which resources for various purposes are
classified for accounting and reporting purposes into
funds that are in accordance with the activities or objec-tives
specified. Separate accounts are maintained for
each fund; however, in the accompanying comprehensive
✷✿✿✿ 1 ✸✶✶✶ H i g h l i g h t
Fiscal year 1999-2000 produced a
shining example of philanthropy’s
power. Julian and Josie Robertson
gave $24 million to Carolina and
Duke University to establish a pio-neering
new scholarship program in
the two schools.
❉ #
❢✐❢ ❥✇❢ ❇ ✈❜ ❥ ❜ ❞❥❜ ❙❢
✉ ✸✽
annual financial statements, funds that have similar
characteristics have been combined into fund groups.
Accordingly, all financial transactions have been recorded
and reported by fund group. The University’s self-balanc-ing
fund groups are as follows:
Current Funds—include all unrestricted and restricted
resources which are available for the operating purposes
of performing the primary missions of the University.
Current Funds are considered unrestricted unless restric-tions
imposed by the donor or other external agency are
so specific that they substantially reduce the University’s
flexibility in their utilization. Proprietary Funds reflecting
the operations of the student stores, dormitories, and
other auxiliary enterprises and internal service funds are
shown separately from other Unrestricted Funds.
Receipts that are restricted are recorded as additions to
Restricted Fund balances and recognized as revenue to
the extent that such funds are expended for restricted
purposes during the current fiscal year.
Fiduciary Funds—include Loan Funds, Endowment and
Similar Funds, and Agency Funds. Loan Funds include
resources received from donors, governmental agencies,
and mandatory institutional matching grants which are
restricted for use in making student loans. Endowment
and Similar Funds are further categorized as Endowment
Funds, Term Endowment Funds, Quasi-endowment
Funds, and Annuity and Life Income Funds. Endowment
Funds are subject to restrictions of gift instruments
whereby principal is invested and only income is utilized.
Term Endowment Funds are similar to Endowment
Funds, except that all or part of the principal may be
used after a stated period of time or on the occurrence of
a certain event. Quasi-endowment Funds have been
established by the governing board for the same purposes
as Endowment Funds, and any portion of Quasi-endow-ment
funds may be expended. Annuity and Life Income
Funds are received by the University under deferred-giv-ing
agreement contracts that provide income to the donor
and/or the donor’s designee for life or for a fixed period
of time. At the termination of the contracts, the funds
become available for general institutional purposes or for
any restricted purpose designated by the donor in the
contract. Agency Funds are those funds of students and
organizations held by the University as custodian. The
transactions of the Agency Funds do not result in any
revenue or expenditures for the University; therefore,
these funds are not shown in the statement of changes in
fund equity.
Plant Funds—include Unexpended Plant Funds, Debt
Service Funds, and Investment in Plant Funds.
Unexpended Plant Funds account for the resources uti-lized
to finance the acquisition of long-life assets and to
provide for routine renewal and replacement of existing
plant assets. Debt Service Funds account for resources
specifically accumulated for interest and principal pay-ments,
debt service reserve funds, and other debt related
charges. Investment in Plant Funds account for all long-life
assets of the University, construction in progress, and
related debt for funds borrowed and expended for the
acquisition of Plant Fund assets.
DEBT ADMINISTRATION
The University of North Carolina at Chapel Hill has $285
million of revenue bonds outstanding at June 30, 2000.
The bonds were issued to finance the construction
and/or renovation of student housing facilities, student
union facilities, parking facilities, football stadium expan-sion,
dining facilities, student recreation facilities, utilities
systems, ambulatory patient care facilities, hotel facilities,
dental clinic facilities and a facility to be leased to the
United States Environmental Protection Agency. The
bonds are payable both as to principal and interest from
the net revenue generated by the operations of the afore-mentioned
facilities and are consistently rated in the AA
and AAA categories by Standard and Poor’s Corporation.
CASH MANAGEMENT
The cash management plan of the University addresses
control of receipts, management of disbursements, and
investment of funds to maximize earnings on the invest-ment
of cash. State law requires that State appropriated
funds be deposited with the State Treasurer with invest-ment
earnings accruing to the State. Many other current
funds, loan funds, and unexpended plant funds are not
appropriated by the State but must be deposited with the
State Treasurer with investment earnings accruing to the
University. Endowment, debt service, and designated
other funds are invested by the University in accordance
with its investment policies.
The University administers a short-term investment pool
for funds not required to be on deposit with the State
Treasurer. The investment pool is administered in con-junction
with cash receipts and disbursing requirements
to minimize idle cash and to generate current income
without loss of capital at a rate of return comparable to
The Government Finance Officers
Association of the United States
and Canada (GFOA) awarded a
Certificate of Achievement for
Excellence in Financial Reporting to
The University of North Carolina at
Chapel Hill for its comprehensive
annual financial report for the fiscal
year ended June 30, 1999
✸✾ ✐❢  ❥✇❢
❥✉! ❣ ❖
✉✐ ❉❜
❥ ❜ ❜✉ ❉✐❜ ❢ ❥
the North Carolina State Treasurer. The University uses
the State’s cash management control system to improve
cash flow by electronically recording cash receipts and
disbursements for funds deposited with the State
Treasurer.
RISK MANAGEMENT
The University is exposed to various risks of loss related
to property and employees. These risks are addressed in
several ways, including participation in various State-administered
risk pools, purchase of commercial insur-ance,
and self retention of certain risks. Refer to Note 12
of the Notes to the Financial Statements for more
detailed information concerning the University’s risk man-agement
program.
Other Information
AUDITS
State law, federal guidelines, and certain bond covenants
require that the University’s accounting and financial
records be audited by the Office of the State Auditor each
year. Additionally, the University’s Internal Auditors per-form
fiscal, compliance and performance audits. The
reports resulting from these audits are shared with
University management.
The audit of the University’s federal financial assistance
programs is performed by the Office of the State Auditor
in conjunction with the statewide Single Audit. The
accounting and financial records of The University of
North Carolina at Chapel Hill Foundation, Inc. and of the
Athletic Department are each audited by a public
accoun

The University of North Carolina at Chapel Hill
❉✐❜ ❢ ❥ ✲ ❖
✉✐ ❉❜
❥ ❜ ❥ ❞❜ ❢❜
❋ ❡❢❡ ❑✈ ❢ ✹✶✲ ✸✶✶✶
C o m p r e h e n s i v e A n n u a l F i n a n c i a l R e p o r t
❇ ❉ ✉❥✉✈❢ ✉ ❏ ✉❥✉✈✉❥ ❣ ✐❢  ❥✇❢
❥✉! ❣ ❖
✉✐ ❉❜
❥ ❜ ❚! ✉❢# ❜ ❡ ❜ ❞ # ❢ ✉ ✈ ❥✉ ❣ ✉✐❢ ❚✉❜✉❢ ❣ ❖
✉✐ ❉❜
❥ ❜ ✸✶✶✶
✐❢  ❥✇❢
❥✉! ❣ ❖
✉✐ ❉❜
❥ ❜ ❜✉ ❉✐❜ ❢ ❥
University Mission
The University of North Carolina at Chapel Hill has been
built by the people of the State and has existed for two
centuries as the nation’s first state university. Through its
excellent undergraduate programs, it has provided higher
education to ten generations of students, many of whom
have become leaders of the State and nation. Since the
nineteenth century, it has offered distinguished graduate
and professional programs.
The University is a research university. Fundamental to
this designation is a faculty actively involved in research,
scholarship, and creative work, whose teaching is trans-formed
by discovery and whose service is informed by cur-rent
knowledge.
The mission of the University is to serve all the people of
the State, and indeed the nation, as a center for scholarship
and creative endeavor. The University exists to teach stu-dents
at all levels in an environment of research, free
inquiry, and personal responsibility; to expand the body of
knowledge; to improve the condition of human life through
service and publication; and to enrich our culture.
To fulfill this mission, the University must: [1] acquire, dis-cover,
preserve, synthesize, and transmit knowledge; [2]
provide high quality undergraduate instruction to students
within a community engaged in original inquiry and cre-ative
expression, while committed to intellectual freedom,
to personal integrity and justice and to those values that
foster enlightened leadership for the State and nation; [3]
provide graduate and professional programs of national
distinction at the doctoral and other advanced levels to
future generations of research scholars, educators, profes-sional,
and informed citizens; [4] extend knowledge-based
services and other resources of the University to the citi-zens
of North Carolina and their institutions to enhance the
quality of life for all people in the State; and [5] address, as
appropriate, regional, national, and international needs.
This mission imposes special responsibilities upon the fac-ulty,
students, staff, administration, trustees, and other gov-ernance
structures and constituencies of the University in
their service and decision-making on behalf of the
University.
The University of North Carolina at Chapel Hill
$❣❣❥❞❢ ❣ ✉✐❢ ❥❞❢ ❉✐❜ ❞❢
❣
❥ ❜ ❞❢ ❜ ❡ ❇❡#❥ ❥ ✉
❜✉❥ ❥ ❞❜ ❢❜
❋ ❡❢❡ ❑✈ ❢ ✹✶✲ ✸✶✶✶
C o m p r e h e n s i v e A n n u a l F i n a n c i a l R e p o r t
❇ ❉ ✉❥✉✈❢ ✉ ❏ ✉❥✉✈✉❥ ❣ ✐❢  ❥✇❢
❥✉! ❣ ❖
✉✐ ❉❜
❥ ❜ ❚! ✉❢# ❜ ❡ ❜ ❞ # ❢ ✉ ✈ ❥✉ ❣ ✉✐❢ ❚✉❜✉❢ ❣ ❖
✉✐ ❉❜
❥ ❜ ✸✶✶✶
✸ ✐❢  ❥✇❢
❥✉! ❣ ❖
✉✐ ❉❜
❥ ❜ ❜✉ ❉✐❜ ❢ ❥
Table of Contents
✹ ❏ ✉
❡ ✈ ❞ ✉
! ❚ ❢ ❞ ✉ ❥
4 Message from the Chancellor
5 Letter of Transmittal
30 Board of Trustees
30 Executive and Academic Officers
31 Organization Chart
32 Certificate of Achievement for Excellence in
Financial Reporting
✹ ✹ ❥ ❜ ❞ ❥ ❜ ❚ ❢ ❞ ✉ ❥
34 Report of the Independent Auditor
36 Basic Financial Statements
36 Balance Sheet
38 Statement of Changes in Fund Equity
40 Statement of Current Funds Revenues, Expenditures,
and Other Changes
41 Index to the Notes to the Financial Statements
42 Notes to the Financial Statements
✼ ✽ ❚ ✉ ❜ ✉ ❥ ✉ ❥ ❞ ❜ ❚ ❢ ❞ ✉ ❥
68 Schedule of Current Funds Revenues by Source
70 Schedule of Current Funds Revenues by Source
Adjusted for Inflation
72 Schedule of Current Funds Expenditures and Mandatory
Transfers by Function
74 Schedule of Ratios
82 Schedule of Revenue Bond coverage
83 Schedule of Debt Service to Current Funds Expenditures
84 Admissions, Enrollment and Degree Statistics
86 Faculty and Staff Statistics
❉ #
❢✐❢ ❥✇❢ ❇ ✈❜ ❥ ❜ ❞❥❜ ❙❢
✉ ✹
I n t r o d u c t o r y S e c t i o n ✸✶✶✶
✺ ✐❢  ❥✇❢
❥✉! ❣ ❖
✉✐ ❉❜
❥ ❜ ❜✉ ❉✐❜ ❢ ❥
Message from the Chancellor
As The University of North
Carolina at Chapel Hill moves
into the 21st century, the
nation’s oldest public universi-ty
is facing a defining moment
in its history. The convergence
of a number of factors, includ-ing
a major bond referendum
to help finance capital needs, a
new fund-raising campaign
and completion of a master
plan for central campus, signal
a rebirth – a renaissance, if
you will – for this great univer-sity.
These factors are set against a backdrop of an antici-pated
enrollment increase stemming from an influx of
college-bound N.C. high school seniors.
Carolina has worked hard during the last year to prepare
for this confluence of events. Few, if any, public universi-ties
are fortunate enough to be faced with such a wonder-ful
and exciting challenge.
During the 1999-2000 academic year, the University spent
a great deal of time educating North Carolina’s lawmak-ers
and general public about the need for the higher edu-cation
capital facilities bond referendum. Our administra-tors,
staff, students, alumni and friends effectively told the
story of our needs and, along with our peers at other
public universities and community colleges in the state,
helped convince the General Assembly to place the $3.1
billion referendum on the November 7 ballot. The bond
package was approved and will pump nearly $500 million
into Carolina to help with essential repairs and renova-tions
of existing facilities, as well as construction of
much-needed new ones.
As the nation’s oldest public university, Carolina has much
to be proud of. At the same time, however, the years are
taking their toll on our facilities. Twenty-one percent of
our buildings were constructed before 1930, and some
are well over 100 years old. We have outdated lab and
classroom buildings in need of major renovations and, in
some cases, replacement. Our support facilities also face
a backlog of repair and renovation needs. And the univer-sity
faces a growing shortage of classroom, laboratory
and office space – a shortage that will be exacerbated by
enrollment increases in the next decade.
Just as important as the direct impact of the bond money
on the Chapel Hill campus, however, is its impact on the
greater public of North Carolina – on the people who will
benefit from Carolina and other public institutions of
higher learning educating future leaders of the state, pro-ducing
cures for ravaging diseases, uncovering new tech-nologies,
and making North Carolina a better place to live
and work. The bond money will help us keep the doors of
educational and economic opportunity open wide for
the state.
Coming on the heels of the bond referendum is the new
Carolina First fund-raising campaign, currently in its silent
phase. The campaign, expected to raise some $1.5 billion,
will go public in October 2001. Those dollars will further
help the University address building needs, as well as
programmatic, faculty compensation and student accessi-bility
issues.
The campaign builds on a firm foundation of fund raising.
In 1999-2000, some 57,000 donors gave $165 million to
Carolina – a 10 percent increase over 1999 giving. And
faculty received more than $376 million in awards– a new
campus record – from federal and other sources in 1999-
2000. That total represents a 9 percent increase from fis-cal
1999. We also saw a 16 percent hike in National
Institutes of Health funding for research in federal fiscal
year 1999, ranking Carolina fifth nationwide among public
universities and the top public university in the South in
NIH support.
Coinciding with the bond referendum and fund-raising
campaign is the completion of a new master plan for the
central campus. To become the very best public universi-ty,
we must assure that Carolina can provide a quality liv-ing
and learning environment. That’s just what the new
master plan – designed by the Boston firm of Ayers Saint
Gross – does. It gives us a roadmap for future campus
development. Completion of the plan in fall 2000 is well
timed as UNC-CH prepares to embark on major renova-tion
and building projects funded through the anticipated
bond package and fund-raising campaign.
Taken individually, any one of these events would have a
tremendous impact on Carolina’s future. Yet taken togeth-er,
this confluence of events will leave the University
well-positioned to embrace the challenges of the 21st
century and fulfill its mission of outstanding teaching,
cutting-edge research and unparalleled service to the
people of North Carolina and beyond.
Sincerely,
James Moeser
Dr. James Moeser was elected as chancellor effective August
15, 2000, succeeding William O. McCoy, who had served as
interim chancellor since July 1999.
❉ #
❢✐❢ ❥✇❢ ❇ ✈❜ ❥ ❜ ❞❥❜ ❙❢
✉ ✻
Letter of Transmittal
November 10, 2000
To Chancellor Moeser, Members of The Board of
Trustees, and Friends of The University of North
Carolina at Chapel Hill:
❏ ❖  ❙ $ ❊  ❉  ❏ $ ❖
This Comprehensive Annual Financial Report includes
the financial statements for the year ended June 30, 2000,
in addition to other information useful to those we serve
and to those to whom we are accountable. Responsibility
for the accuracy of the information and for the complete-ness
and fairness of its presentation, including all disclo-sures,
rests with the management of the University. We
believe the information is accurate in all material respects
and fairly presents the University’s financial position, as
well as revenues, expenditures, transfers, and other
changes in fund balances. The Comprehensive Annual
Financial Report includes all disclosures necessary for the
reader of this report to gain a broad understanding of the
University’s operations for the year ended June 30, 2000.
The report is organized into three sections.
The Introductory Section includes a message from the
Chancellor, the transmittal letter, a listing of the
University Board of Trustees, a listing of executive and
academic officers, and an organization chart. Also
included is information on major University initiatives, as
well as financial and economic data. This section is
intended to acquaint the reader with the organization and
structure of the University, the scope of its operations, its
financial activities, the significant factors contributing to
the current fiscal environment, and anticipated factors
influencing our future.
The Financial Section presents the basic financial state-ments
and a report of the Office of the State Auditor.
The basic financial statements are prepared in accor-dance
with generally accepted accounting principles for
public colleges and universities, as defined by the
Governmental Accounting Standards Board and the
American Institute of Certified Public Accountants.
The Statistical Section contains selected financial, sta-tistical,
and demographic information. This information
is intended to present to readers a broad overview of
trends in the financial affairs of the University.
The financial statements in the Financial Section present
all funds belonging to the University and its component
units. While the Board of Governors of the University of
North Carolina System has ultimate responsibility, the
Chancellor, the Board of Trustees, and the Board of
Trustees of the Endowment Fund have delegated respon-sibilities
for financial accountability of the University’s
funds. Although legally separate, The University of North
Carolina at Chapel Hill Foundation, Inc. (Foundation) and
The University of North Carolina at Chapel Hill
Foundation Investment Fund, Inc. (Investment Fund) are
reported as if they are part of the University based on
Governmental Accounting Standards Board Statement 14.
The Foundation’s purpose is to aid, support, and promote
teaching, research and service in the various educational,
scientific, scholarly, professional, artistic, and creative
endeavors of the University while the Investment Fund’s
purpose is to support the University by operating an
investment fund for charitable, nonprofit foundations,
associations, trusts, endowments and funds that are
organized and operated primarily to support the
University. The financial statements of the Foundation
and the Investment Fund have been blended with those
of the University. Other related foundations and similar
non-profit corporations for which the University is not
financially accountable are not part of the accompanying
financial statements. The University of North Carolina at
Chapel Hill is a constituent institution of the sixteen cam-pus
University of North Carolina System, which is a
component unit of the State of North Carolina and an
integral part of the State’s Comprehensive Annual
Financial Report.
❋ ❉ $ ❖ $ , ❏ ❉ ❉ $ ❖ ❊ ❏  ❏ $ ❖
❇ ❖ ❊ $   - $ $ .
Despite the devastating impacts of hurricanes and ensu-ing
floods, the North Carolina economy still performed
quite well in the 1999-2000 fiscal year. The state contin-ued
to attract immigration to add to natural population
growth so that the U.S. Bureau of the Census estimated
the total population at 7,650,789 people as of July 1,
1999. This represented growth of 15.4 percent since the
1990 Census, well above the U.S. average of 9.6 percent.
Office of the
Vice Chancellor for Finance and Administration
The University of North Carolina at Chapel Hill
CB#1000, 300 South Building
Chapel Hill, N.C. 27599-1000
(919) 962-3798
THE UNIVERSITY OF NORTH CAROLINA
AT
CHAPEL HILL
✼ ✐❢  ❥✇❢
❥✉! ❣ ❖
✉✐ ❉❜
❥ ❜ ❜✉ ❉✐❜ ❢ ❥
The state was almost exactly like the U.S. average for
both the proportion of the population under age 25 (25.4
percent for North Carolina and 25.8 percent for the entire
U.S.) and the proportion 65 years old and above (12.5 per-cent
vs. 12.7 percent).
Total personal income in North Carolina was a record
$205.5 billion in fiscal 1999. By the second quarter of
2000 total personal income in the state was running at a
seasonally adjusted annual rate of $212.1 billion. This
was up 6.8 percent from the second quarter of 1999, right
in line with the 6.7 percent national increase for the same
period. Total personal income in North Carolina in the
second quarter of 2000 was $3.2 billion less than Virginia
and $16.0 billion less than Georgia.
Personal income per capita was $28,518 for the entire U.S.
in 1999. For North Carolina, the comparable figure was
$26,220 or 92 percent of the national average. This was
up 4.1 percent from 1998, a little below the national aver-age
increase of 4.8 percent. This level of income was
enough to put North Carolina in 28th place, just behind
Texas ($26,525) and just ahead of Missouri ($26,187).
These numbers can only be expected to improve in the
next year or two. In September 2000, when the national
unemployment rate was 3.9 percent, the unemployment
rate in North Carolina was only 3.6 percent. There were
only 141,200 people in the entire state in September who
were unemployed and looking for work. By contrast,
there were 3,807,400 people who were employed in North
Carolina in September, up 41,500 people or 1.1 percent
from a year earlier.
The unemployment rates in the state’s three largest met-ropolitan
statistical areas (MSAs) were close to the state
average in September, which was 3.3 percent on a not-seasonally-
adjusted basis. The Charlotte-Gastonia-Rock
Hill (SC) MSA had 3.4 percent unemployment, while the
Greensboro-Winston-Salem-High Point MSA had 2.7 per-cent
and the Raleigh-Durham-Chapel Hill MSA had one
of the lowest unemployment rates of any MSA in the
country at 1.5 percent. The Asheville MSA had a 2.3 per-cent
unemployment rate in September. Nationally, col-lege
graduates age 25 and over had an unemployment
rate of only 1.6 percent in October, 2000.
National economic growth should be much lower in fiscal
2000 than in fiscal 1999. North Carolina should outper-form
the U.S., but still grow less than in fiscal 1999. Gross
state product for North Carolina was $235.8 billion in
1998, 2.7 percent of the total U.S. and that made it the
12th largest state economically.
The University of North Carolina at Chapel Hill is continu-ing
its leadership role in helping not just North Carolina,
but the entire U.S. economy move from “old economy”
business practices to new knowledge-based technologies
and methods. This University plays a vital role in con-tributing
to the economic health of the region and the nation.
, ❇ ❑ $ ❙ ❏ ❖ ❏  ❏ ❇  ❏  ❋ ❚
The University continually strives for excellence in fulfill-ing
its teaching, research, and public service missions.
Certain successes and planned improvements are
described herein.
COLLEGE OF ARTS AND SCIENCES
The College of Arts and Sciences launched a series of
major initiatives during 1999-2000, including the following:
First Year Seminar Program
In its inaugural year, this innovative interdisciplinary pro-gram
reached over 1,000 students in 65 small seminars,
taught by some of the University’s most accomplished
senior faculty.
Office of Undergraduate Research
The new office provided unprecedented opportunities for
undergraduates to work one-on-one with faculty on spe-cial
research projects.
Johnston Center for
Undergraduate Excellence
The new Center opened in the fall, and 42 classes were
taught in the spring. The Center also hosted 430 non-classroom
events, offering undergraduates opportunities
to visit with distinguished guests including the Governor,
the Chief Justice of the State Supreme Court, and others.
Advising
The advising process was redesigned to make the system
more effective and meaningful for students. The system
now offers 8 new full-time advisers and 23 faculty mem-bers
serving as part-time advisers, compared to the past
when 50 faculty advised students part-time. Advisers had
more than 40,000 student contacts during the year.
Undergraduate Curriculum Review
This major ongoing curriculum review process will
involve faculty, students and administrators including a
series of public discussions of what it means to be an
educated person.
Interdisciplinary Initiatives
The College oversaw the planning for interdisciplinary
science initiatives in bioinformatics, genomics, nano-technology
and environmental sciences; a new Science
Complex; a new Center for Global Education; a new
Digital Multi-Media Center, and a new Center for
Public Policy.
Globalization and International Studies
The College established UNC bases in key areas of the
globe, reformed and expanded the Study Abroad program
and integrated it into the academic curriculum. The
College also established new undergraduate curriculum in
International and Area Studies.
❉ #
❢✐❢ ❥✇❢ ❇ ✈❜ ❥ ❜ ❞❥❜ ❙❢
✉ ✽
Arts and Sciences Information Service
This new office provided technical support to faculty, staff
and administration of the College, including re-design of
the College web site and incorporation of new technolo-gy
in the First Year Seminars.
Director of Communications
This new position was created in 1999-2000 to improve
internal and external communications for the College and
all of its constituents. The new communications director
joined the dean’s office in August and has launched a
news and information service utilizing email bulletins and
the new web site.
Research, Teaching, and Public Service
College faculty gave 2,300 public presentations and par-ticipated
in 540 performances and exhibitions; they pub-lished
2,400 books, chapters and journal articles, and
received 188 awards and professional honors. Community
service activities included a science bus that traveled
across N.C. taking innovative science teaching to school
children, and assistance from the department of city and
regional planning to eastern N.C. communities devastated
by Hurricane Floyd.
SCHOOL OF EDUCATION
This year, under the auspices of the Carolina Teaching
Network, we will be offering coursework in our new
Master’s Degree for Experienced Teachers. This master’s
program will be offered to cohorts of teachers who share
a school or school district. It will provide intensive
coursework during the summers and will sustain work
during the school year through internet communication
and meetings at sites close to teachers’ homes and work-places.
We will offer a master’s degree program in school
administration for teachers in a similar format. By work-ing
with cohorts who share school communities, we are
enabled to address curriculum, instruction and school
organization with groups of teachers eager to work
together to improve their schools and the quality of their
own teaching practices.
These programs join other off-campus efforts to prepare
and support teachers: our federally funded program to
provide English as a Second Language training to teach-ers;
our work with lateral entry teachers in NCTeach; our
internet based courses in special education; and our work
with teachers in every school district of North Carolina
through LEARN NC, our internet based network for
teachers offering teacher-authored curriculum tailored to
the standard course of study and a remarkable library of
hot-link curriculum resources, including connections to
the Ackland Museum collection, programs from the
Morehead planetarium, and a new on-line system enti-tled
Carolina On-Line Teacher (COLT) for teachers inter-ested
in developing skills in distance education.
While face-to-face interaction is essential to any curricu-lum
that addresses education, it is important to utilize dis-tance
education resources where appropriate to make
education accessible and to provide channels for conver-sation
and community among teachers dispersed across
the state and the nation. This year every member of the
School of Education will be trained to become familiar
with software that supports on-line curriculum.
Our efforts to support teacher education and practicing
teachers will be enhanced by access to the new R.D. and
Euzelle Smith middle school in Chapel Hill/Carrboro
School District. Located between Seawell Elementary
School and Chapel Hill High School, the middle school
completes an educational park that offers curriculum
development opportunities for area teachers and School
of Education students and researchers. The new school
will also provide a site for off-campus courses and work-shops
for teachers.
The Education Arts Agenda continues to flourish, work-ing
with arts departments across campus to infuse
teacher education courses with arts experiences. This
year’s focus is the jazz festival that will take place on cam-pus
in the spring semester, offering us exciting opportuni-ties
to address the relationship of structure to improvisa-tion
in teaching as well as the rich history of jazz in
African-American culture. In addition the Curriculum,
Music, and Community project which brings indigenous
musicians into schools, linking old time music, blues,
gospel and jazz to subjects across the fourth grade cur-riculum
will continue, adding new schools in the
Piedmont and Eastern Carolina to the pilot projects
already initiated in the western counties of the state.
INSTITUTE OF GOVERNMENT
Fiscal Year 1999-2000 was an excellent year for the
Institute in all areas, most notably in the breadth and
quality of our faculty, staff and student response to
Carolina communities following the floods of
Hurricane Floyd.
✷✿✿✿ 1 ✸✶✶✶ H i g h l i g h t
The Education Arts Agenda
continues to flourish, working with
arts departments across campus to
infuse teacher education courses with
arts experiences.
✾ ✐❢  ❥✇❢
❥✉! ❣ ❖
✉✐ ❉❜
❥ ❜ ❜✉ ❉✐❜ ❢ ❥
This year the long-awaited expansion and renovation of
the Institute’s 40-year-old building began. With the build-ing
increasing substantially in size, the Institute is working
to supplement its state appropriation with $4 million in
additional public and private funds to complete all the
planned renovations and to fully furnish, equip and land-scape
the building.
Institute faculty taught over two hundred courses reach-ing
more than 14,000 of North Carolina’s public officials.
Teaching, research and service highlights for the year
include:
The graduation of 91 municipal and county officials from
the Institute’s flagship150-hour Municipal and County
Administration course. These students joined more than
3,300 public officials who have completed the curriculum
since 1954.
Five teams of Master of Public Administration students
conducted research and analysis projects for: Town of
Hillsborough—Comprehensive Ten-year Street Re-paving
Plan; Town of Carrboro—Review of Town Advisory
Boards and Performance Measures for the Planning
Department; NC Coastal Federation—Evaluation of
Coastal Management Alternatives for Dealing with
Beach Erosion; Leadership Triangle—Community Impact
Assessment.
Thirty-one teachers of the high-school course “Economic,
Legal and Political Systems” (ELP) attended a weeklong
summer workshop to learn new interactive teaching tech-niques
for helping students understand and value their
roles as citizens. Workshop sponsors were The Cannon
Foundation, the Constitutional Rights Foundation, and the
NC Association for the Prevention of School Violence.
The Jessie Ball duPont Fund contributed $150,000 to
initiate a multi-year research project to help government
agencies and nonprofit organizations devise effective
ways to communicate and work together in meeting state
and community needs. The Institute also is participating
in a research project sponsored by the Pew Partnership
for Civic Change to gather and disseminate promising
practices related to community building and civic prob-lem
solving.
Kevin FitzGerald, formerly Director of the NC Division of
Social Services, was hired as Planning Director for the
new interdisciplinary Center for Public Technology. The
center will offer teaching, research and other technical
assistance to improve the delivery of public services and
transform citizen involvement with government.
FitzGerald will guide the design of the Center in partner-ship
with state and local governments, technology com-panies,
other academic units and institutions, and private
companies and nonprofit organizations doing business
with government.
In the aftermath of Hurricane Floyd, at least 15 faculty
members advised and taught local and state government
officials on issues such as emergency local government
finance; FEMA accounting; governmental authority to
enter private property for emergency; inspections; emer-gency
contracting; funding to provide high-ground hous-ing;
state-level emergency funding options; and zoning
and planning options in emergencies. MPA students spent
fall break helping local government managers with tasks
related to disaster relief. For example, students working in
Goldsboro evaluated the damage-assessment process and
searched tax records for home values, then entered the
values on a GIS layer showing the locations of those
homes. The Civic Education Consortium also worked
with the NC Department of Administration, the Rural
Economic Development Center, the NC Department of
Public Instruction, and 4-H Youth Development to con-duct
a survey of hurricane recovery needs among youth
in the affected region. The survey included an April 2000
Information Highway summit about recovery needs
involving teenagers from Duplin, Edgecombe, Lenoir, and
Pitt Counties.
SCHOOL OF SOCIAL WORK
In 1999 U.S. News & World Report rated the School of
Social Work (SSW) 7th of over 130 masters programs
nationally and 4th among public schools of social work.
While this ranking is a testament to our hard work and
successful history, the school is committed to further
growth and new opportunities in education, research, and
service to the community and international activities.
Education
2000–2001 is the year of self-examination as the SSW
pursues reaccreditation of its Masters’ Program from the
Council on Social Work Education and Program Review
from the Graduate School. This will entail a comprehen-sive
examination of policies, operations, curriculum and
outcomes.
In the fall of 2000, we opened a new part-time distance
education program in Fayetteville and admitted the final
cohort of students in our Charlotte program. Overall our
✷✿✿✿ 1 ✸✶✶✶ H i g h l i g h t s
In the fall of 2000, The School of
Social Work opened a new part-time
distance education program in
Fayetteville and admitted the final
cohort of students in our Charlotte
program. Overall the incoming MSW
class of 2000 was the largest in the
School’s history.
❉ #
❢✐❢ ❥✇❢ ❇ ✈❜ ❥ ❜ ❞❥❜ ❙❢
✉ ✿
incoming MSW class of 2000 was the largest in the
School’s history.
Faculty, staff and students from the SSW have been
active participants in North Carolina flood relief efforts,
assisting with donation collections, cleanup and long-term
psychosocial assistance to flood survivors.
Our faculty and staff have been prolific, publishing
eight books, 21 book chapters and over 50 articles in
1999–2000.
Research and Service
During fiscal year 1999-2000, over 45 externally funded
projects totaling almost $12 million involved more than
100 faculty and staff. One major new project is the Child
Welfare Education Collaborative, a $1.5 million collabora-tive
effort among the state’s three graduate social work
programs, county departments of social services and
other statewide organizations.
During 1999-2000, the Jordan Institute for Families con-tinued
to serve as a major source for off-campus educa-tion
of professionals in adult and children’s mental health,
child welfare, aging, juvenile justice, and substance abuse
services, among others. In all, 14,000 individuals in
almost all of the state’s 100 counties participated in work-shops,
seminars, trainings and conferences sponsored by
the SSW through the Institute.
During 2000-2001, the Jordan Institute for Families
intends to apply to the National Institute on Drug Abuse
(NIDA) for funding for a Social Work Research
Development Program. The Institute will also submit a
proposal to the National Institute on Mental Health
(NIMH) for support of a Social Work Research
Development Center.
International Activities
This past summer the SSW sponsored two summer
school abroad courses: one to Mexico, exploring the
social and economic forces contributing to increasing
migration to the US, and one to Eastern Europe, analyz-ing
and comparing public and private social development
institutions. The School hosted two Fulbright Scholars in
1999-2000 and sponsors monthly informal discussions of
international social issues through its International Social
Work Exchange Program. Faculty continues to provide
consultation and training in a number of countries, most
recently Lithuania, Israel and Romania.
KENAN-FLAGLER
SCHOOL OF BUSINESS
With the dedication of the new state-of-the-art Paul J.
Rizzo Conference Center at Meadowmont on Sept. 22,
2000, Kenan-Flagler ushered in a new era for its
Executive Education Program. The Center, located on the
pastoral, 28-acre Meadowmont property off of N.C. 54,
offers an ideal location for business executives to tackle
strategic issues. The center is named for school alumnus
Paul J. Rizzo, retired vice chairman of IBM, former
Kenan-Flagler dean (1987-92) and presently chairman of
the board and partner in Franklin Street Partners Inc., to
recognize his leadership and service to Kenan-Flagler and
UNC-Chapel Hill. Kenan-Flagler’s Executive Education
programs have been consistently ranked among the best
in the country by publications including Business Week,
U.S. News & World Report and the Financial Times.
Kenan-Flagler will admit its first students in February
2001 to the Corporate MBA Program, the first interna-tional
executive MBA program custom-designed for cor-porate
teams. Teams of five to seven executives from
non-competing companies will spend 20 months getting
their MBAs, with residencies in Chapel Hill, Asia, Europe
and Latin America. Between residencies, teams will
engage in interactive, Internet-based learning. The cap-stone
of the Corporate MBA is a consulting project for
each sponsoring company. Nortel Networks is among the
first companies to sign-on for this innovative program.
In an innovative application of technology to business
education, Kenan-Flagler is tracking in real time the dra-matic
changes being made in the School’s MBA Program
– and it’s unveiling those improvement strategies to the
world. www.MBAscorecard.unc.edu, the first Web site of
its kind, reveals the MBA Scorecard, which shows the
MBA Program’s objectives and how they are measured,
current performance and goals and improvement plans
under way. The MBA Scorecard is the first application of
the balanced scorecard idea to business education. The
pace-setting idea appealed to Dell Computer Corp., which
sponsored the creation of the Web site.
Kenan-Flagler is leading the way in preparing future lead-ers
for the ever-changing, digital world. In January 2000,
the school established eUNC (http://eunc.unc.edu), an e-business
research center devoted to leading-edge
research, education and practice in the areas of informa-tion
technology, commerce and knowledge. Under the
auspices of eUNC, students can get help starting their own
With the dedication of the new
state-of-the-art Paul J. Rizzo
Conference Center at Meadowmont
on Sept. 22, 2000, Kenan-Flagler ush-ered
in a new era for its Executive
Education Program.
✷✶ ✐❢  ❥✇❢
❥✉! ❣ ❖
✉✐ ❉❜
❥ ❜ ❜✉ ❉✐❜ ❢ ❥
technology-based businesses in the new eLauncher, an
incubator located in the basement of the McColl building.
The School continues to be a leader in the critical and
emerging business area of environmental management
and sustainable enterprise. The World Resources Institute
and the Aspen Institute recognized Kenan-Flagler’s pre-eminence
in the field of sustainability in October 1999 by
awarding it the nation’s top ranking for incorporating
environment-business issues in the MBA Program. Two of
the School’s faculty members were named faculty pio-neers
for reshaping business education to integrate envi-ronmental
and social issues in corporate decision-making.
Kenan-Flagler Dean Robert S. Sullivan met with
President Bill Clinton in April 2000 to brainstorm ways to
bridge the “digital divide,” to ensure that every person
has equal access to technology. Sullivan, an acknowl-edged
technology expert, was among the leaders invited
to participate in the president’s roundtable discussion on
the digital divide in Whiteville, N.C., where Clinton
stressed the importance of high-speed Internet access to
rural economic development. Sullivan also met privately
with key state leaders on ways to close the digital gap in
North Carolina.
SCHOOL OF JOURNALISM
AND MASS COMMUNICATION
This year marked the School’s one-year anniversary in its
splendid new home on the campus: Carroll Hall. More
than 400 friends gathered March 31-April 1, 2000, to ded-icate
and celebrate the newly renovated building. Many
alumni, friends, corporations and foundations have made
generous gifts to the School, raising more than $5 million
in private money for the renovation.
The School of Journalism and Mass Communication has
been nationally accredited since 1958. We were the first
school in the United States to receive full, unit accredita-tion.
In our latest accreditation report, in May 1997, the
national Accrediting Council on Education in Journalism
and Mass Communications (ACEJMC) gave our School
nothing less than a rave review. It said that our School is
arguably the best in the nation.
The mass media and communication businesses and
other entities in the state – and far beyond – continue to
look to us for graduates to hire and for research and for
professional partnerships of many kinds.
The School focused on two areas of specialty this year.
Our relatively new medical journalism program has taken
off, with the first master’s students entering in fall 2000.
Attempts are being made to develop a specialty in sports
communication because it’s so pervasive not only in the
United States but also internationally.
The School’s Executive Education program has proven
successful, offering monthly workshops and seminars on
newspaper design, media law, the performing arts, politi-cal
coverage, marketing communication, public relations,
the Latino community and the business of sports. The
program is committed to providing communication lead-ers
and specialists with the most up-to-date knowledge
and perspective needed to succeed in an increasingly
competitive market.
Undergraduate excellence continues to be a top priority.
Each year national and international awards go to stu-dents
in our five undergraduate sequences. This year our
School came in third in the nation in the annual Hearst
writing competition. “Carolina Week,” a 30-minute week-ly
campus news program, debuted in spring 2000.
Twenty-seven of our 60 graduate students presented 37
papers in the AEJMC Southeast Regional Colloquium of
the History, Law, Newspaper and Magazine Divisions,
which was held in the School. And they won 10 of the 14
regional prizes that were given.
Professional partnerships continue to be vital to our
School because they enable our students, faculty, staff
and outside constituents to learn more about our current
mass communication issues and practices. This year, one
current partnership, the USA Today Minisabbatical
Program, benefitted both USA Today and the School by
allowing fellows to talk to classes and interact with faculty
members and students.
Two outstanding foundations — the Park Foundation and
The Freedom Forum — continue to give big annual
grants to help make our graduate program world-class.
Our 60 Park Fellows celebrated the Carroll Hall dedica-tion
with a champagne breakfast to honor the Park family.
And we hope to have the first Park Visiting Professor in
the School for spring 2001. All three Freedom Forum
Ph.D. Fellows graduating this year landed excellent teach-ing
jobs, including one who will have an endowed profes-sorship
right after Ph.D. school.
✷✿✿✿ 1 ✸✶✶✶ H i g h l i g h t s
In our latest accreditation report, in
May 1997, the national Accrediting
Council on Education in Journalism
and Mass Communications (ACEJMC)
gave our School nothing less than a
rave review. It said that our School is
arguably the best in the nation.
❉ #
❢✐❢ ❥✇❢ ❇ ✈❜ ❥ ❜ ❞❥❜ ❙❢
✉ ✷✷
SCHOOL OF INFORMATION AND
LIBRARY SCIENCE
SILS continues to benefit from its number one ranking
among schools of information and library science award-ed
by U.S. News and World Report in March 1999. The
school attracted very high-caliber students from around
the world. The 1999 (calendar year) entering class of 101
master’s students represented 18 states and seven foreign
countries. The average GRE score of master’s entrants
was 1173 and the average undergraduate GPA was 3.33.
In October 1999, SILS was awarded a $3.7 million con-tract
to provide library services for the Environmental
Protection Agency (EPA) in Research Triangle Park for a
five year period. Over the last 26 years that SILS has held
this contract, over 250 students have served as paid
library interns at EPA and the National Institute for
Environmental Health Sciences.
In November 1999, SILS was reviewed for accreditation
of its masters’ programs by the American Library
Association and thereafter by the UNC Graduate School.
Both reviews were helpful and productive, pointing out
both resource needs, such as additional space and staff,
as well as areas of strength. In January 2000, we learned
that both our master’s degrees in information science and
library science had been accredited for a full seven-year
period. This is the first time that an information science
master’s program has achieved the maximum accredita-tion
period.
Building on the popularity and strength of the undergrad-uate
minor, SILS requested permission to plan a new
major in information science from the General
Administration in 1999. This permission was granted in
January 2000 and detailed curriculum plans have been
developed. This new degree responds directly to the need
for information technology professionals in Research
Triangle Park.
A highlight in development during 1999-2000 was the
endowment of the Michael Hooker Fellowship in Applied
Networking. The $120,000 donation was made jointly by
Selby Wellman, John Chambers and CISCO Systems.
Digital Library Week organized by SILS Boshamer
Professor Gary Marchionini attracted researchers from all
over North America and the Research Triangle. The week
was concluded with the annual Henderson Lecture pre-sented
by Michael Lesk from the National Science
Foundation. The third annual Susan Steinfirst lecture was
given by Seymour Simon, author of 150 highly acclaimed
children’s science books. The event attracted over 100
local area children and families.
SILS faculty members continued to win major national
awards in 1999–2000. Professor and Emerita Evelyn
Daniel won the Professional Service Award from the
Association for Library and Information Science
Education. Professor Paul Solomon won the prize for best
article in the Journal of the American Society for
Information Science. Dean and Professor Joanne Gard
Marshall won the Winifred Sewell Prize for Innovation in
Information Technology from the Biomedical and Life
Sciences Section of the Special Libraries Association.
Boshamer Professor Gary Marchionini won the Frederick
G. Kilgour Award for Research in Library and Information
Technology sponsored by OCLC Inc. and the Library and
Information Technology Association (LITA), a division of
the American Library Association.
SCHOOL OF LAW
The School of Law opened and dedicated a marvelous
58,000 square foot building addition in October, 1999.
The facility provides significant, and strongly needed,
small and medium-sized classrooms, new student services
offices, a library expansion, enlarged student organization
space, an excellent clinical education plant and a beautiful
central rotunda. The addition has dramatically trans-formed
the Law School’s physical facility. The very
atmosphere of the institution has changed-creating a
powerful sense of optimism and excellence in both the
faculty and the student body. That sense of optimism
was ratified and intensified by an extraordinarily positive
reaccreditation report issued by the American Bar
Association in the spring. Those who work at the School
of Law have every confidence that it can build on its tra-ditions
to become one of the very best public law schools
in the country.
As an example of that progress, and of our complemen-tary
goal to more effectively serve the people of North
Carolina, in July, 2000 the Law School launched a new
Center for Banking and Financial Services. This Center,
working closely with the Business School and the
Charlotte legal and banking communities, will cement the
Carolina Law School’s role as a leading institution for the
The School of Law opened and ded-icated
a marvelous 58,000 square
foot building addition in October,
1999. The addition has dramatically
transformed the Law School’s physi-cal
facility.
✷✸ ✐❢  ❥✇❢
❥✉! ❣ ❖
✉✐ ❉❜
❥ ❜ ❜✉ ❉✐❜ ❢ ❥
study of banking law. Professor Lissa Broome is the new
center director. She brings tremendous expertise in the
legal challenges facing banks and great contacts with the
banking world through her own scholarship and strong
track record of the Banking Law Institute. The Center
will allow us to bring into our curriculum the most
accomplished banking lawyers in America. The Center is
already conducting a commissioned study of North
Carolina banking laws, in order to propose amendments
and revisions of the present code. And the conference
work, already scheduled, will help to mark this institution
as a focal point for legal study. This new effort illustrates
the Carolina Law School’s goal of developing a caliber of
faculty, students and programs that is second to none. We
seek to improve the quality of our efforts while we deep-en
and foster our traditional ties to the people and institu-tions
of North Carolina.
FRANK PORTER GRAHAM
CHILD DEVELOPMENT CENTER (FPG)
Since its inception, FPG has embraced a dual mission of
generating knowledge through research and sharing this
knowledge through a variety of outreach activities. Last
year, 51 FPG grants, totaling more than $10 million were
devoted to research; 27 FPG grants, totaling more than $8
million, focused on outreach initiatives.
Major research themes included enhancing the quality of
early care and education environments for children (birth to
5), supporting children with disabilities through early inter-vention,
and strengthening parenting and family support.
The center was awarded a three-year $855,336 NIH grant
to assess how parents from different cultural backgrounds
who have a child (or who are at risk for having a child)
with a genetic disorder seek out, understand, and use
knowledge to interpret genetic disorders and make deci-sions
about reproduction and health services. A $539,898
grant from the US Department of Education is addressing
early identification of children with fragile X syndrome.
The National Center for Early Development and Learning
housed at FPG was awarded a three-year $11 million
extension to examine public school-based early childhood
education in the US.
The center’s outreach activities included technical assis-tance,
web-based dissemination of research findings,
model demonstration projects, and product development.
The center received a $305,239 grant to train assessors of
child care centers in accordance with North Carolina’s
new five-star licensing system. A $782,261 grant will
evaluate the effects of professional development activities
conducted through distance learning. The National Early
Childhood Technical Assistance System (NECTAS) deliv-ered
7,500 client-centered services last year to state-level
administrators of early education and intervention pro-grams.
The average number of daily hits on the FPG web
site approached 20,000 last year.
SCHOOL OF DENTISTRY
During 1999-2000, the School of Dentistry introduced
several new and significant initiatives within the School’s
mission areas of teaching/learning, research, patient care
and service.
Teaching/Learning
During the past year, development of the Electronic
Syllabus project and the online database, which contain
teaching/lecture materials for our DDS and allied dental
education students, continued. A new Curriculum
Enhancement Fellowship Program, which provides
stipend support to 18 DDS and allied dental students for
assisting Course Directors with the development of novel
digital teaching materials and products, was implemented.
One lecture hall and four seminar rooms were renovated
to provide state-of-the-art digital technologies, which will
permit the further implementation of our evolving digital
curriculum.
Research
The major initiative was the creation and implementation
of the Comprehensive Center for Inflammatory
Disorders, officially created on August 1, 1999. This
Center brings together 33 principal investigators from the
disciplines of basic science, dentistry, medicine, epidemi-ology,
health services, education, and community work to
study the cause, effect, treatments and outcomes of
chronic inflammatory disorders. Federally-funded and
total support for research activity reached its highest level
ever, and new initiatives in craniofacial growth and devel-opment,
biomaterials, inflammation, and tissue engineer-ing
were responsible for the continued growth in
research. The implementation of a new training program
in neurosciences, the expansion of the Clinical Scholars
and Oral Biology Graduate Programs, and the continued
excellence of the Oral Epidemiology Training Program
were additional activities. Progress continued to be made
in all areas of research activity, including craniofacial dis-eases
and disorders, studies on incidence, risks, and out-come
treatments for third molar extraction, clinical evalu-
✷✿✿✿ 1 ✸✶✶✶ H i g h l i g h t s
Since its inception, FPG has
embraced a dual mission of
generating knowledge through
research and sharing this knowl-edge
through a variety of
outreach activities.
❉ #
❢✐❢ ❥✇❢ ❇ ✈❜ ❥ ❜ ❞❥❜ ❙❢
✉ ✷✹
ation of dental adhesives, the effects of anti-bacterial and
anti-inflammatory agents on periodontal disease, gene
therapy for AIDS, studies on bone grafting and remodel-ing,
studies on new dental composites, and the role of
periodontal disease in coronary heart disease and
preterm low birth weight deliveries. New initiatives in the
genetic regulation of bone loss and regeneration, aerody-namics
of speech in cleft palate patients, molecular basis
for craniofacial abnormalities, sliding mechanics for
orthodontia appliances, dental materials and adhesives,
and inflammatory mechanisms in oral and systemic dis-eases
highlight the year.
Patient Care
We are continuing to integrate and improve our clinical
computer systems. Eventually clinical and financial data
will be seamlessly interfaced with our student grading
system. Digital radiography has been implemented on a
limited basis but this could be expanded to include the
entire school. Procedures are being examined to opti-mize
the use of staff and materials.
Public Service
The School produced its first live Webcast for the 45th
Annual Meeting of the Southern Conference of Deans
and Dental Examiners. Participants at a remote site were
able to view live clinical procedures being demonstrated
at the School. A mobile Webcast station is now available
to assist with live and pre-recorded online video presenta-tions.
Dental OPPS (Online Professional Posting Site) was
created to allow alumni and other dental professionals to
post practice opportunities and staff needs. Working in
cooperation with the General Alumni Association, the
school launched an online alumni directory to enhance
communication among alumni both locally and interna-tionally.
The Dental Alumni Association underwrote the
cost of special project to beautify the southwest corner of
the School of Dentistry complex. The newly landscaped
Alumni Garden will be dedicated in September as part of
the School’s 50th Anniversary Celebration.
NORTH CAROLINA
AHEC PROGRAM
Health Careers and Workforce Diversity
Last year 14,058 young people participated in AHEC
activities in health careers and workforce diversity.
Activities included shadowing and mentoring experiences,
summer experiential activities, health career fairs and
forums, and cultural sensitivity training. These programs
are designed to expose students of all ethnic and socio-economic
backgrounds to opportunities in health profes-sions,
help students prepare for challenging careers in
healthcare, and address workforce shortages that exist in
North Carolina.
Library and Information Services
The N.C. Area Health Education Centers (AHEC)
Program has received a grant from the Duke Endowment
to continue developing its digital library, a World Wide
Web portal that provides access to high-quality electronic
health resources for physicians and clinical educators.
The AHEC Digital Library (http://library.ncahec.net/)
provides health information to AHEC staff, faculty, med-ical
residents and more than 2,000 preceptors located
across the state. The library offers desktop access to pri-mary
medical databases, electronic full-text medical jour-nals
and textbooks, clinical practice guidelines and
patient education information. As the digital library is
developed, its resources will be extended to all health
practitioners throughout the state.
The AHEC Program received $150,000 from The Duke
Endowment. An additional $250,000 is expected for the
program over the next two years after an annual approval
process. The funds will be used to add new subject areas
to the digital library collection, and will make resources
available free of charge to new audiences.
Off-Campus Degree Programs
AHEC designs and supports off-campus programs that
improve educational mobility for students in nursing, pub-lic
health, and social work. The AHEC Program allocates
funds for these programs, and provides the schools and
students with logistical support, classroom space, com-puter
support, and library support. In addition, they help
identify appropriate clinical sites and develop preceptors.
There are currently more than 400 students enrolled in
AHEC-supported off-campus degree programs: 67 stu-dents
in public health; 14 MSW students; and 320 stu-dents
are working toward off-campus nursing degrees.
SCHOOL OF MEDICINE
A new Department of Genetics was established this year,
increasing the number of academic departments in the
School to twenty-six. The School has recruited eight new
department chairs since January 2000 (for a total of four-teen
new chairs and four new center directors since
The N.C. Area Health Education
Centers (AHEC) Program has
received a grant from the Duke
Endowment to continue developing its
digital library, a World Wide Web por-tal
that provides access to high-quality
electronic health resources for physi-cians
and clinical educators.
✷✺ ✐❢  ❥✇❢
❥✉! ❣ ❖
✉✐ ❉❜
❥ ❜ ❜✉ ❉✐❜ ❢ ❥
1997), representing an unprecedented period of major
change in the School’s senior leadership.
New and renovated research facilities are a top priority of
the School to be supported by both new University and
School investment. Attractive space will enable the
School to continue to attract and retain first-rate scien-tists
in the priority areas of genomics and bioinformatics,
the neurosciences, infectious diseases, cancer programs,
vascular biology and clinical research and technology
transfer.
The School received notification of funding of two federal
grants, each for five years. The Health Careers
Opportunity Program grant from the Department of
Health and Human Services will provide $2.2 million to
support enrichment programs for minority and other dis-advantaged
students to prepare them for medical school
application. The NIH has renewed our Short Term
Research Training Grant that provides stipends to
enrolled medical students for participation in projects for
2-3 months with faculty preceptors. Funded by the
Health Affairs Interdisciplinary Education Committee, the
School designed and implemented a case based exercise
within existing courses across five UNC schools to
demonstrate the team approach to health care.
After Hurricane Floyd devastated many areas in eastern
North Carolina in September 1999, the School’s faculty
and students responded to relief efforts in important
capacities. Family Medicine faculty coordinated an effort
to acquire medications and distributed them in eastern
North Carolina, resulting in more than 500,000 doses of
oral prescription medications and nearly 7,000 packages
of topical products, inhalers, injections, nutritional supple-ments,
cough and cold products, and medication-related
devices available for distribution to patients. Faculty
established and staffed a relief clinic in Grifton, NC for
seven weeks, working with the North Carolina Academy
of Family Practice. Psychiatry faculty offered crisis serv-ices
to the victims of Hurricane Floyd and their care-givers
and “crash course” training to volunteers from the
UNC Health Care System, and to local professionals in
eastern North Carolina. Seventy medical students
received recognition by the Surgeon General for volun-teering
for one week during their second year clinical
medicine course in Eastern North Carolina assisting in
relief efforts following Hurricane Floyd.
The Clinical Center for the Study of Development and
Learning (CDL) was awarded a grant from the North
Carolina Division of Early Intervention and Education to
establish a regional multi-disciplinary resource team to
provide training, technical assistance, etc. to existing early
intervention agencies in a five-county area of North
Carolina working with children birth to 5 years with low
incidence disabilities (visual impairment, hearing impair-ment,
autism, and other mental health concerns).
A project in the Department of Emergency Medicine was
funded by the North Carolina Office of Emergency
Medical Services and the North Carolina Governor’s
Highway Safety Initiative to develop a statewide electron-ic
EMS medical record to be used by all EMS systems in
North Carolina. The program will allow local EMS sys-tems
to capture and store useful information to promote
quality care, improve patient outcomes, and advance pre-hospital
outcomes-based research.
In April 2000 Rex Healthcare in Raleigh became part of
the UNC Health Care System to complement and expand
the existing services and programs offered by UNC and
Rex, and to enhance the abilities of both organizations to
serve patients and families in the greater Triangle area.
SCHOOL OF NURSING
This was an active year for the School of Nursing. In July
1999, Linda Cronenwett, PhD, RN, FAAN, became Dean
of the School and led a school-wide effort to review and
evaluate the School’s organization and administrative
structure. With input from faculty, staff, students, alumni
and clinical partners, a new administrative structure was
created and implemented to ensure the strength of the
School’s academic, research, and clinical initiatives.
In response to the growing nursing shortage and, in par-ticular,
the need for greater numbers of nurses trained at
the master’s level, the School implemented a new MSN
Outreach Program in collaboration with Wake AHEC.
This year, 64 students completed two courses at the Wake
site; 29 of these students have been accepted into the
MSN program, with 16 matriculating for full-time study
on the Carolina campus, and 13 electing the part-time
Wake Outreach option.
Recognizing the need to reduce the health disparities
experienced by rural residents of our state, the School
developed a Rural Community-Oriented Primary Care (R-COPC)
educational program for Primary Care-Family
Nurse Practitioner (PC-FNP) students. A 3-year, $725,000
grant from the Bureau of Health Professions, US-DHHS,
✷✿✿✿ 1 ✸✶✶✶ H i g h l i g h t s
Recognizing the need to reduce the
health disparities experienced by
rural residents of our state, the School
developed a Rural Community-
Oriented Primary Care (R-COPC)
educational program for Primary
Care-Family Nurse Practitioner (PC-FNP)
students.
❉ #
❢✐❢ ❥✇❢ ❇ ✈❜ ❥ ❜ ❞❥❜ ❙❢
✉ ✷✻
has been awarded to support implementation of the pro-gram,
which will prepare graduates to practice as Family
Nurse Practitioners in rural communities with traditional-ly
under-served populations. The program provides a
multi-cultural learning environment and increases accessi-bility
of FNP programs to students from underrepresent-ed
ethnic minority and other disadvantaged backgrounds.
A major initiative this year was the creation of a Minority
Visiting Scholars program. The program involves the
recruitment and hosting of underrepresented ethnic
minority nursing scholars for one-week periods with the
intent of promoting the intellectual climate of the School,
conveying our commitment to inclusiveness, and enhanc-ing
our ability to recruit underrepresented minority schol-ars
to faculty positions within the School of Nursing. Dr.
Rhetaugh Dumas, Vice Provost Emerita, Dean Emerita,
and Lucille Cole Professor of Nursing at the University of
Michigan was our first visiting scholar. Throughout her
visit, Dr. Dumas worked with nursing faculty, students and
staff to discuss the issues involved in creating a culture of
acceptance for ethnic minorities within academia. The
School also hosted a forum on Race and Scholarship that
brought together distinguished minority scholars from
UNC-CH to discuss the experiences of minority scholars
and professionals. Drs. Angela Bryant, Genna Rae
McNeil, Keith Wailoo, and Henry Frierson, served as
panel members, and Dr. John Hatch moderated the ses-sion.
As did many others in the University, faculty, students,
and staff of the School of Nursing responded to the dev-astation
caused in eastern North Carolina by hurricane
Floyd by devoting time, energy, and material goods to the
relief effort. Faculty and graduate students staffed shel-ters
and temporary health clinics. Senior nursing stu-dents
in a Psychiatric Mental Health Nursing course com-pleted
a 3-week intensive clinical experience in one of the
hardest hit towns, Grifton, NC. Under the supervision of
their nursing instructor, they completed 60 hours of clini-cal
training, learning how to deliver post-disaster crisis
care. Two additional clinical groups have since traveled
to the town, and the experience is offered to other stu-dents
studying community/mental health nursing.
The School achieved a new record in research funding.
Faculty and doctoral students garnered $5.5 million in
research support from the National Institutes of Health
(NIH) and other foundations and agencies. Our school
was again ranked fourth among all schools of nursing in
research funding from NIH. Collectively, the School’s
research studies involve and provide services to individu-als
in over 70 counties in the state.
Finally, the School began construction on a 1,000 square
foot addition to the Biobehavioral Laboratory, which pro-vides
equipment and training for the assessment of real-time
biological and behavioral parameters. The new
addition will provide a two-room sleep lab, space for
preparation and storage of biological assays, and an
instrumentation facility for development, evaluation and
training in the use of non-invasive ambulatory measure-ment
techniques.
SCHOOL OF PHARMACY
The revolution in molecular biology is at the cusp of
establishing genes as therapeutic agents, much like antibi-otics
or any other drugs. Genes are in fact drugs: they
have doses, they have therapeutic effects, they have
adverse effects, and they have the potential to cure dis-eases
that are currently beyond our reach. In collabora-tion
with the School of Medicine (Gene Therapy Center
and Department of Pharmacology), faculty in the School
of Pharmacy are part of an NIH grant totaling $4 million
over five years to advance the use of genes as therapeutic
agents. Entitled “The Pharmacodynamics of Genes and
Oligonucleotides,” the project should provide important
information on using genes in the most safe and effective
manner.
Planning is underway for an Institute on Natural Medicine
(INM). One of the leading figures in the science of natu-ral
medicine is Kenan Professor K. H. Lee of the School
of Pharmacy. Dr. Lee is currently Director of the Natural
Products Laboratory, and in collaboration with Research
Triangle Institute, the Office of Technology Transfer at
UNC, and other scientists and administrators at UNC is
planning for an international center of excellence that will
develop new compounds with therapeutic potential from
natural products, will develop quality control standards (a
critical deficiency in current national policy), and coordi-nate
placement and evaluation of clinical trials testing the
safety and efficacy of natural medicines.
The UNC Center for Education and Research in
Therapeutics (CERTs) is one of seven funded in the U.S.
this year. This initiative is part of our national health
strategy to achieve optimum use of drugs and devices in
the U.S. by providing funds for research that would fall
outside the scope of the National Institutes of Health or
the pharmaceutical industry. Other Centers are located at
In collaboration with the School of
Medicine (Gene Therapy Center and
Department of Pharmacology), faculty
in the School of Pharmacy are part of
an NIH grant totaling $4 million over
five years to advance the use of genes
as therapeutic agents.
✷✼ ✐❢  ❥✇❢
❥✉! ❣ ❖
✉✐ ❉❜
❥ ❜ ❜✉ ❉✐❜ ❢ ❥
Harvard, Duke, Vanderbilt, University of Pennsylvania,
Georgetown University, and University of Alabama at
Birmingham. The UNC Center is focused on conducting
research and developing educational programs for practi-tioners
who prescribe, administer, and dispense medica-tions
for children.
Banks D. Kerr Hall, a 65,000 square foot addition to the
Pharmacy Building will double current space and provide
much needed laboratory, classroom and office space.
This project should be completed during the next 16
months, at a cost of approximately $24 million, and dra-matically
improve our ability to serve the people of North
Carolina.
SCHOOL OF PUBLIC HEALTH
The School of Public Health is actively engaged in con-tinuing
and expanding its tradition of excellence in teach-ing,
research, practice, and service. Highlights from 1999-
2000 include:
The UNC-CH School of Public Health was ranked the
nation’s top school of public health at a public university
by US News and World Report magazine, and was third
overall after Johns Hopkins and Harvard Universities.
The School launched in August the North Carolina
Institute for Public Health, a major service initiative that
links faculty, students, and staff with the public health
practice community. One of its first endeavors was to
provide significant technical assistance and leadership
support to help North Carolina recover from the ravages
of Hurricane Floyd.
The University established this year the Drinking Water
Research Center in the School of Public Health. This
Center draws on expertise in chemistry, economics, engi-neering,
epidemiology, microbiology, risk assessment, and
water policy, and brings existing drinking water-related
research and service efforts at Carolina under a single
umbrella.
The Barbara Sorenson Hulka Distinguished Professorship
in Cancer Epidemiology was established this year through
the generosity of Dr. Hulka. This professorship will allow
the School to recruit to its faculty a senior scholar and
researcher of international distinction who will further
strengthen the cancer research program at UNC-Chapel
Hill.
The American Institute for Cancer Research
Distinguished Professorship in Cancer, Nutrition, and
Prevention was created in the School’s Department of
Nutrition. This professorship will forge crucial links
among the School of Public Health, the School of
Medicine, and the Lineberger Comprehensive Cancer
Center.
The Program on Health Outcomes, a university-wide pro-gram
housed in the School of Public Health, received
$1.5 million from the Glaxo Wellcome Foundation to pro-vide
core support over the next three years. The
Program also received a three-year $1.98 million grant to
establish the first of seven federally supported Centers for
Education and Research on Therapeutics.
The School’s 22nd Annual Minority Health Conference,
“Public Health 2000: Reflections on the Past, Directions
for the Future,” drew a record crowd of more than 500
students, researchers, practitioners, and educators in pub-lic
health and human services.
The first 98 public health practitioners graduated in May
from the Management Academy for Public Health, a
groundbreaking initiative of the School of Public Health
and the Kenan-Flagler Business School to strengthen the
management capacity of local and state health depart-ments
in Georgia, North Carolina, South Carolina, and
Virginia.
Architects are working with School officials to finish the
last design details for our new public health laboratory
building. We have received all required University and
State approvals and look forward to breaking ground in
the coming fiscal year. This building will house vital
research and training activities in environmental sciences
and engineering, epidemiology, and nutritional biochem-istry.
The UNC Program on Health Outcomes, the Cecil B.
Sheps Center for Health Services Research, and the UNC
Schools of Public Health and Medicine anticipate receiv-ing
an award to become a federally supported Center of
Excellence on Overcoming Racial Health Disparities.
This Center will conduct research and service projects
directed at reducing health disparities and training the
next generations of minority health affairs students.
✷✿✿✿ 1 ✸✶✶✶ H i g h l i g h t
The School’s 22nd Annual Minority
Health Conference, “Public Health
2000: Reflections on the Past,
Directions for the Future,” drew a
record crowd of more than 500 stu-dents,
researchers, practitioners, and
educators in public health and
human services.
❉ #
❢✐❢ ❥✇❢ ❇ ✈❜ ❥ ❜ ❞❥❜ ❙❢
✉ ✷✽
UNIVERSITY LIBRARIES
❢ ❜ ✉ ✐ ❚ ❞ ❥ ❢ ❞ ❢ - ❥ ❝
❜
!
Improved Services
HSL opened the User Services Center, the library’s single
service point, which reduces the number of places users
need to go to obtain services. A program featuring
Enriqueta Bond, Burroughs Wellcome Fund President,
marked the opening.
HSL automated more of the interlibrary lending and bor-rowing
functions. Documents can be scanned, emailed
and received in digital form. Users can input and track
the status of their requests online. The library has com-pletely
eliminated paper forms for processing interlibrary
loans. Average turnaround time for requests has dropped
from 11 days to 4 days.
UNC-CH alumni have a new web site of library services
and health-related information, selected especially for
them by HSL librarians using established quality criteria.
The page is on the HSL web site (www.hsl.unc.edu).
Expanding Service to North Carolina Communities
The Area Health Education Centers (AHEC) Digital
Library reached prototype stage. The Health Sciences
Library is leading the development of this new service.
Primary health care providers throughout the state, hospi-tal
residents, and students on rotation in community
teaching sites have access to core information and library
services through the AHEC Digital Library. The AHEC
Digital Library plans eventually to reach all health profes-sionals
in the state, with a $400,000 grant received from
the Duke Endowment.
The three campus libraries hired the first campus-wide
Distance Education Specialist with funds from the state
legislature. Library distance education services include
information help from librarians, electronic reserves,
information skills tutorials, and access to articles. These
services reached students across North Carolina and the
world this year. Some state locations include: Asheville,
Cullowee, Gastonia, Hickory, Laurinburg, New Bern,
Roanoke Rapids, Silva. Even students in multi-campus
programs such as the curriculum in Speech and Hearing,
are obtaining improved library service and materials as
faculty receive help from campus libraries in support of
their distance education courses.
Serving New Populations
HSL staff collaborated with Duke Medical Center Library
staff to create an Evidence Based Medicine online tutori-al.
Organizations have requested permission to link to this
module from their web sites or to translate the module
into Spanish.
The library hosted 24 course-integrated instructional ses-sions
for 483 undergraduate students. Librarians help stu-dents
find information at both consumer and professional
levels by providing instruction on choosing databases,
search terms and techniques, evaluating web resources,
and selection and use of full text articles. Students are in
biology, English, physical education, and journalism cur-ricula.
HSL librarians helped teach 110 public and community
college librarians in North Carolina how to find health-related
information resources and use them to answer
questions from the public. HSL librarians developed the
course materials and AHEC librarians and HSL librarians
taught the sessions.
❇ ❞ ❜ ❡ ❢ # ❥ ❞ ❇ ❣ ❣ ❜ ❥
- ❥ ❝
❜
!
During 1999-2000, the Academic Affairs Library sus-tained
our commitment to ongoing services and tradition-al
collections, while also developing innovative programs
and collections which reflect and will help to shape the
digital environment.
Five Millionth Volume
In February, the Libraries celebrated the acquisition of
our five millionth volume, contained in a collection of
1,200 volumes of William Butler Yeats. The collection
was given by the Hanes family of Winston-Salem, contin-uing
a family tradition of donating each of the Library’s
milestone millionth volumes. The acquisition was facilitat-ed
by the creator and owner of the collection, Professor
George Harper, former Chair of the UNC-CH English
Department, who donated a significant portion of his
related materials. The Yeats collection will add greatly to
the Academic Affairs Library’s growing strengths in
Anglo-Irish literature.
Expanded Access to Electronic Information and Services.
The Libraries continued to extend access to electronic
information in a variety of ways, including, but going
well beyond, the purchase and licensing of information
in electronic form. During the year, the Library began
In February, the Libraries celebrated
the acquisition of our five millionth
volume, contained in a collection of
1,200 volumes of William Butler Yeats.
✷✾ ✐❢  ❥✇❢
❥✉! ❣ ❖
✉✐ ❉❜
❥ ❜ ❜✉ ❉✐❜ ❢ ❥
routinely adding Federal Government Documents to the
online catalog, facilitating the retrieval and use of these
unique resources. A “Borrower Self-Service” feature was
introduced, permitting patrons to view their charged-out
items and, in most cases, to renew them. A new interli-brary
borrowing request program was implemented,
allowing patrons to request and track items via a Web
form.
Documenting the American South
In April, the Academic Affairs Library’s Documenting the
American South digitization project
(http://ibiblio.unc.org/docsouth/) was recognized by the
Southeastern Library Network (SOLINET) as the
“Outstanding Library Program” of 2000 in the
Preservation and Electronic Information category. The
DAS project brings Southern history, literature, and cul-ture
to the World Wide Web with contents which include
the searchable full-text of over 600 monographs, along
with images of illustrations, manuscript items, maps, cur-rency,
letters, broadsides, and other materials.
Support for Teaching and Learning
Pursuant to the recommendations of a 1999 internal
report, the Academic Affairs Library is expanding pro-gramming
to increase support for campus teaching and
learning needs. As the first major step toward realizing
these goals, the Library created the new position of
Coordinator for Instructional Services, who will provide
leadership, direction, and planning in this area. The
Coordinator for Instructional Services began work on
September 1, 2000, and will collaborate with faculty and
librarians to identify ways in which the Library can best
help students and others learn to make effective use of
the many resources available to them. Two new instruc-tional
labs were built in Davis Library this year, featuring
43 hands-on workstations. These facilities will improve
the Library’s instructional activities by providing a more
interactive learning environment.
Development
The Library’s preliminary case statement outlining objec-tives
for the University’s upcoming Carolina First
fundraising campaign incorporates four goals: to maintain
our ranking on the Association of Research Libraries
Index as the best general research library in the
Southeast; to expand and enhance our special strengths
in Southern resources; to create a new center of excel-lence
in undergraduate library services by developing an
innovative program that will be a model for the nation;
and to improve and expand the collections and technolo-gies
to support existing and emerging science programs
across the campus in concert with the Health Sciences
Library. We will seek a total of $35 million in funding to
meet these objectives.
GRADUATE STUDIES AND RESEARCH
Graduate Studies and Research is comprised of the
Graduate School, the Odum Institute for Research in
Social Science, the Office of Research Services, the
Proposal Development Initiative, the Office of
Technology Development, the Office of Information
and Communications and the Office of Economic
Development. The Office of the Vice Provost for
Graduate Studies and Research oversees each of
these units.
During 1999-2000, the University received a record
$376.5 million in grants and contracts, an increase of $32
million over the previous year. The Office of Technology
Development expanded its activities related to its mission
of commercializing UNC-CH inventions. During 1999-
2000, OTD filed over 76 U.S. patent applications, an
increase of 25 percent over last year. In addition, 37 new
U.S. patents were issued during the fiscal year. OTD also
introduced a new electronic Materials Transfer
Agreement and has seen a number of companies previ-ously
licensed through OTD reach important commercial
milestones (e.g., Immtech International Inc, Hangers
Cleaners, Inspire).
The Office of Research Services has taken the lead in
developing the University’s response to new rules for
protection of Human Subjects and continued its steady
progress toward electronic research administration
with phase one of the Coeus system introduced on
July 1, 2000.
Other highlights of the Office for Graduate Studies and
Research include initiation of a cooperative efforts
between the Office of Information and Communications
and the Alumni Office which will result in over a threefold
increase in individuals receiving copies of our research
magazine, Endeavors. As a result of this initiative, all life
members of the UNC General Alumni Association (GAA)
will receive a copy of Endeavors along with regular
copies of the Alumni Magazine. This will increase read-ership
from approximately 9,000 to 34,000.
The Proposal Development Initiative continues to assist
in bringing recognition to our faculty by nominating them
✷✿✿✿ 1 ✸✶✶✶ H i g h l i g h t
The Office of Research Services
has taken the lead in developing
the University’s response to new
rules for protection of Human
Subjects and continued its steady
progress toward electronic research
administration with phase one of
the Coeus system introduced on
July 1, 2000.
❉ #
❢✐❢ ❥✇❢ ❇ ✈❜ ❥ ❜ ❞❥❜ ❙❢
✉ ✷✿
for national awards. In 1999-2000, faculty at UNC-CH
received the following awards that were initiated through
the Proposal Development Initiative: William T. Grant
Faculty Scholar award; Camille Dreyfus Teacher-Scholar
Award; Pew Scholar Award; Carnegie Fellow Award;
Ellison Medical Foundation New Scholar Award;
Burroughs Wellcome Fund Innovation Award and
Burroughs Wellcome Fund Career Award.
The Graduate School expanded support for graduate stu-dents
in order to meet its mission of recruiting the most
exceptional students to Chapel Hill. A new multidiscipli-nary
top-up fellowship for students in social and human
sciences was initiated with private funds. Funds for the
Royster Society of Fellows have grown and as a result 32
students received Royster fellowships during the
1999–2000 academic year. In addition, the Graduate School
has developed a series of courses and programs to provide
professional development opportunities for graduate stu-dents.
Progress within the Odum Institute for Research in Social
Science has included the appointment of a new director,
Dr. Kenneth Bollen and new research initiatives related to
the consequences of Hurricane Floyd.
OFFICE OF SCHOLARSHIPS
AND STUDENT AID
The Office of Scholarships and Student Aid concentrated
its effort on improving systems and operations, streamlin-ing
delivery of aid and strengthening client services. In
total, over $106 million was awarded and delivered to
over 11,000 undergraduate and graduate/professional
students.
Staff spent considerable time assessing the projected
impact of proposed 2000-2001 tuition and fee increases
on needy undergraduate, graduate, and professional stu-dents.
This process encompassed a comprehensive
review of national literature on the effects of tuition
increases on needy students nationally, and the applica-tion
of those findings to UNC-CH students. As a result,
the University reaffirmed its policy of “holding needy stu-dents
harmless” from 2000-2001 tuition increases, dollar-for-
dollar. Commitment to providing access to education
for students who need financial assistance continues to be
a priority, as evidenced by University policies and practice.
As part of the Carolina Computing Initiative, any student
enrolling in 1999-2000 could borrow funding for the pur-chase
of a laptop at 6.32% interest — the same rate
afforded students under subsidized federal need-based
student loans. The computer loans were made available
through Student Stores, and financed by the College
Foundation, Inc. In the spring of 2000, staff notified
nearly 1100 financial aid-eligible freshmen (class of 2004)
that they would receive a laptop grant ranging from a
minimum of $500 to a maximum of $2,300 to cover the
cost of a laptop. The University provided the funding for
the laptop grants, ensuring that needy students would not
be harmed by the CCI requirement that all incoming
freshmen own a laptop.
The Office contracted with Scannel and Kurz, Inc. for an
evaluation of the effectiveness of financial aid packaging
policies in attracting students of superior academic ability
through the offer of both need-based and merit-based aid
and scholarships. The findings of this study will be used
in support of the University’s current and long-range
recruitment, retention and enrollment goals.
The Office significantly increased the number of National
Merit Scholarship winners for a second year in a row.
This increase was brought about by the University’s
decision in 1998 to enter the National Merit Scholarship
Program as an institutional sponsor. The University
pledged the proceeds of a major estate to fund this
initiative; when fully phased in annual funding will total
$600,000. During the 1999-2000 academic year, 132
students received the National Merit Scholarship award,
up 33% over the prior year.
Successful development efforts resulted in the availability
of more academic scholarships. The addition of these
academic scholarships enhances the University’s ability to
recruit and enroll the most talented students in the state
and nation. Development efforts continue for academic
scholarships, with the expectation that the number of
available academic scholarships will continue to increase
each year.
The Office benefited from a major renovation of Vance
and Pettigrew Halls, which significantly improved the
appearance of the office and the quality of services pro-vided
to students.
INFORMATION TECHNOLOGY SERVICES
The University’s Information Technology Services divi-sion
implemented the highly successful Carolina
Computing Initiative (CCI). This initiative creates an infra-
The University’s Information
Technology Services division
implemented the highly successful
Carolina Computing Initiative (CCI).
This initiative creates an infrastruc-ture
that enables new instructional
models and new interactions
between faculty and students.
✸✶ ✐❢  ❥✇❢
❥✉! ❣ ❖
✉✐ ❉❜
❥ ❜ ❜✉ ❉✐❜ ❢ ❥
structure that enables new instructional models and new
interactions between faculty and students. Students are
no longer tied to classrooms and libraries, but have
access to faculty and instructional materials wherever
they may be. The CCI continues to be ahead of schedule
and slightly under budget. To date, the campus has pur-chased
over 13,000 computers for faculty and staff
through the IBM contract, resulting in substantial savings
to the University. The Center for Instructional
Technology’s seminars helped faculty to create over 400
online course web pages for their classes, while over
3,100 CCI freshmen participated in Carolina Testing &
Orientation Program Sessions (CTOPS) training. To sup-port
these technology users, a computer repair center
was established in the Information Technology Response
Center (ITRC), and a new call center service was installed
for better management of incoming calls and to facilitate
problem tracking and resolution. The ITRC uses the
Remedy Problem Tracking System, which provides a way
to record and track technical problems and allows us to
generate statistics regarding the types of technical prob-lems
reported, and the resources required to address
them. The system allows customers to report issues by
telephone, internet, email, or in person.
The success of the CCI depends on a solid data commu-nications
infrastructure. The University has made signifi-cant
progress in implementing a campus-wide utility
model for data networking, from the wallplate to the
Internet. ITS projects have improved network capacity
throughout campus, provided wireless Internet connec-tion
capability to selected departments, classrooms, and
libraries, provided Ethernet connections for every student
in campus residence halls, and upgraded the connection
to MCNC to provide higher speed and increased function-ality
to the North Carolina Research and Education
Network (NCREN), the Internet and Internet2. The cam-pus
fiber optic network will continue to be reconfigured
and expanded to meet demand.
ITS has expanded the critical services of electronic mes-saging,
instructional technology, and research computing
offerings, added web-based e-mail access, and imple-mented
a significant Oracle database service to meet the
demands for research and web database services, increas-ing
the capacity of its mass storage facility from 7 to 125
terabytes. The Control Center now operates an on-line
Service Monitoring System, tracking the UNC Data and
Video Network and critical email, web, and research serv-ices
systems 24 hours a day. The Control Center web site
(http://control-center.oit.unc.edu) keeps the UNC com-munity
informed of the status of essential computing
services.
The Year 2000 Project Office worked diligently to ensure
that all systems were year 2000 ready and that no hard-ware
or software date problems would interfere with
University business. These efforts were a complete
success. There were no material interruptions in
University services.
Information Technology is not only one of the driving
factors in the “new economy,” but it is also evident in
many initiatives to re-engineer campus business process-es.
Information Technology in the process of education,
implemented on this campus through the highly success-ful
Carolina Computing Initiative (CCI), is only a part of
the overall picture. This initiative creates opportunities for
new instructional models and new interactions between
faculty and students, but it also enables the University to
improve processes that are crucial to the support of the
learning process.
For example, the University is licensing the Coeus system
from the Massachusetts Institute of Technology, to assist
in the pre-award and post-award management of spon-sored
programs. The objective is to simplify and stream-line
award acquisition and administration throughout the
university. Currently, university proposals are being
tracked through Coeus. College of Arts and Sciences
departments can use this application with computers dis-tributed
through the CCI.
Receipt of funding is only part of the equation in using
sponsored research programs. In addition to the tools that
Coeus will ultimately offer for post-award management,
the University has made other strides in making timely
information available to department managers. InDEPTh
is a departmental management system designed to meet
the specific financial needs of departmental managers at
all levels. Managers can create and route documents for
approval, post and receive notifications for information or
required actions, view up-to-the-minute budget balances,
develop and maintain budget projections, post cash
entries, make payment requests and more. InDEPTh is
fully integrated with the Financial Records System (FRS),
eliminating duplication of data entry.
Since FRS is still a core part of the University’s
Information Technology architecture, we use technologi-cal
advancements such as the CCI to help improve both
the usability and timeliness of its information. E~Print is
✷✿✿✿ 1 ✸✶✶✶ H i g h l i g h t
The Year 2000 Project Office worked
diligently to ensure that all systems
were year 2000 ready and that no
hardware or software date problems
would interfere with University busi-ness.
These efforts were a complete
success. There were no material inter-ruptions
in University services.
❉ #
❢✐❢ ❥✇❢ ❇ ✈❜ ❥ ❜ ❞❥❜ ❙❢
✉ ✸✷
a new software product that enables the University to dis-tribute
reports via the Web. The Web presentation of
these reports eliminates the need to print the reports,
usually 40,000 to 50,000 pages for monthly reports alone.
The e~Print product uses FRS value-based security to
enable viewing of financial reports by only those author-ized
to see the data, and defines more general access to
commonly available reports. If needed, e~Print reports
on the Web can be printed on the customer’s local printer.
Improvements in delivery of information are now supple-mented
with the ability to take electronic action to effi-ciently
use financial resources. The FRS Inbox application
allows users to send an electronic request for Flexible
Budget Transfer (FBT) from their department through a
number of approvals to the Budget Office, which can
approve it, so that the transactions needed for that trans-fer
are automatically posted in FRS. For any person on
campus who has been defined to the system, the Inbox
shows the list of forms either waiting for their approval,
or that they have created. The routing path (i.e., the dif-ferent
approvals a form must pass) can be set by the vari-ous
Deans or Vice Chancellors and maintained by
Financial Systems Support. Once defined, all FBTs are
routed sequentially down the set path with the exception
that an approver may be skipped if specific predeter-mined
criteria are met. For example, a Dean may opt not
to see/approve FBTs that involve non-personnel salary
accounts. This is accomplished by attaching business
rules to each department in the approval routing
path/hierarchy.
OFFICE OF UNIVERSITY ADVANCEMENT
Carolina donors gave the University $165.7 million in gifts
and private grants for the benefit of the University in fis-cal
year 1999–2000, making it the best fund-raising year
in Carolina’s 207-year history. The fiscal 2000 tally is up
12 percent from 1999’s total, and it marks the ninth
straight record-breaking year for private giving to
Carolina. The University has now topped $100 million in
gifts and private grants for four consecutive years.
The changing landscape of higher education makes pri-vate
gifts more critical than ever to maintaining excel-lence,
and Carolina’s strong network of alumni, friends,
employees and students are answering the call. More
than 57,000 donors contributed to the University in fiscal
year 1999-2000. Of the $165.7 million total, 91 percent
— $151.7 million — was designated for academics, while
athletic programs received $14 million.
Carolina encourages donors to direct their support to
schools, programs and research initiatives that are per-sonally
meaningful. The gifts come in many forms,
including cash, stock, property, trusts, annuities, bequests
and endowment gifts.
In fiscal year 1999-2000, Carolina’s total endowment
crossed the $1 billion milestone, putting the University in
elite company nationwide. Endowment funds are impor-tant
to Carolina because they provide a reliable and per-manent
source of support for students, faculty
and programs.
The impact of private giving resonates throughout the
campus. It enhances the University’s intellectual climate
by providing an advantage in recruiting and retaining the
best faculty and the brightest students. It supports
groundbreaking research in medicine and the sciences. It
even funds construction of new learning spaces on cam-pus.
Private gifts enrich the Carolina experience, creating
a margin for excellence otherwise unachievable.
Fiscal year 1999-2000 produced a shining example of
philanthropy’s power. Julian and Josie Robertson gave
$24 million to Carolina and Duke University to establish a
pioneering new scholarship program in the two schools.
Their gift, the largest ever by living individual donors to
Carolina, creates a collaborative program that will recruit
and support extraordinary undergraduate students who
will study at both campuses. The Robertson Scholars will
be expected to cross historical barriers and forge new
links between the universities. Julian Robertson, who
grew up in Salisbury and earned a business degree from
Carolina in 1955, is a legendary stock picker and former
hedge-fund manager in New York. The Robertsons have
one son who graduated from Duke and another currently
enrolled at Carolina.
For the 1998-1999 fiscal year—the latest for which com-parative
figures are available for all U.S. research universi-ties—
Carolina ranked 24th in total gifts and private grants
among the nation’s leading research universities, includ-ing
both public and private institutions. Carolina has
steadily improved its ranking over the last decade, making
substantial gains in a highly competitive environment.
The University’s fund-raising successes have earned high
praise from the Council for the Advancement and Support
of Education (CASE), an international association that
promotes support for education. CASE recognized
Carolina with its Circle of Excellence Award for Overall
Fund-raising Performance in 1999, distinguishing Carolina
Gifts for undergraduate scholarships
totaled $17.8 million in fiscal year
1999-2000 — an increase of more
than 150 percent from 1998-1999.
(The $12 million gift from Julian and
Josie Robertson accounts for much of
this increase.)
✸✸ ✐❢  ❥✇❢
❥✉! ❣ ❖
✉✐ ❉❜
❥ ❜ ❜✉ ❉✐❜ ❢ ❥
as the only six-time winner among public universities.
Harvard and Duke are the only private institutions to
have won the award six times.
In fiscal year 1999-2000, 44,950 Carolina alumni (23 per-cent)
gave back to the University. A record number of
donors—2,989—made Chancellors' Club-level gifts to
Carolina. The total reflects a 6 percent increase over fis-cal
year 1998-1999's record-breaking total, and it includes
an 8 percent increase in young alumni members of the
Chancellors' Club to 444. Young alumni are Tar Heels
within 15 years of graduation (classes of 1986 through
2000). As potential fund-raising leaders and donors, they
are vital to Carolina's future and are encouraged to give
annually. Young alumni can join the Chancellors' Club at
special gift levels, beginning with a $250 gift for alumni
within 5 years of graduation and rising to $1,000 for
alumni 10 to 15 years out of school. Fiscal year 2000
was the fifth full year of operation for the young alumni
giving program, and more than 9,200 young alumni gave
$1,249,166.
Corporations, foundations and organizations made gifts
and grants to the University totaling $90.4 million for aca-demic
purposes in fiscal year 2000. This marks a 16 per-cent
increase over fiscal year 1999. The Class of 2000
senior gift campaign generated $35,813 from 952 class
members and parents. Seniors chose to support a variety
of schools and units with their gifts, but the majority of
these gifts were designated to create the Class of 2000
Senior Room in the expanding Frank Porter Graham
Student Union.
Carolina's web site is an emerging vehicle for giving to
Carolina. In fiscal year 1999-2000, more than 200 alumni,
students and friends used the University's web site to
make credit card gifts. Gifts made over the web in fiscal
year 1999-2000 totaled $38,360 -- an increase of more
than 200 percent over fiscal year 1998-1999. Parents of
Carolina students gave $15.8 million to the University in
fiscal year 1999-2000. Of that total, Carolina alumni par-ents
Julian and Josie Robertson gave $12 million, and
other alumni parents made gifts totaling $2.1 million.
Non-alumni parents gave $1.7 in fiscal year 1999-2000.
The University's development program for parents is now
entering its third year of operation. In each of its first
two years, the program has generated dramatic increases
in giving by parents.
Active and retired faculty and staff are generous donors
to the University. In fiscal year 1999-2000, almost 2,000
employees gave more than $1 million to benefit a wide
range of departments, schools and units. In fiscal year
1999-2000, the phonathon's student callers contacted
69,663 people, receiving 33,599 pledges totaling
$1,940,084. More than 250 student callers worked for the
phonathon in 2000, making it one of the largest student
employers on campus. The phone program combined
with the mail program to generate nearly $4 million for
Carolina -- a 9 percent increase over the programs' totals
in fiscal year 1998-1999.
The University received $7.2 million from 47 estates in
fiscal year 1999-2000. The University booked life-income
gifts with a fair market value of $5.9 million. Life-income
gifts include gift annuities and charitable remainder trusts,
arrangements by which donors give an asset now but
receive income, based on the asset's value, for the rest of
their lives. Upon the income beneficiary's death, Carolina
uses the gift for the purpose the donor specified. Fiscal
year 1999-2000 heralded the kick-off of Carolina's
bequest program, resulting in a dramatic increase of doc-umented
bequests.
Tar Heels across the nation were generous in fiscal year
1999-2000, and many regions posted increases in giving.
About 300 volunteer National Development Council and
Chancellors' Club members organized, hosted and attend-ed
many events from New York to Los Angeles and
points in between, including Chancellors' Club events and
the NDC annual meeting in Chapel Hill. To increase con-tact
with Carolina's alumni and friends across the nation,
the regional giving program added three major-gifts offi-cers
to their ranks in fiscal year 1999-2000.
In fiscal year 1999-2000, 557 Carolina alumni and friends
made gifts of stock to the University totaling $18.6 mil-lion
-- a 25 percent increase over fiscal year 1998-1999's
total. The last decade has fostered a rising trend of stock
gifts to Carolina. Many Chancellors' Club members make
their annual gifts via stock. Many donors also use stock
to make major gifts or installments on major gift pledges.
Gifts for undergraduate scholarships totaled $17.8 million
in fiscal year 1999-2000 -- an increase of more than 150
percent from 1998-1999. (The $12 million gift from
Julian and Josie Robertson accounts for much of this
increase). Gifts for graduate fellowships totaled $4.7 mil-lion
in fiscal year 1999-2000. Gifts for professorships
increased 25 percent from fiscal year 1998-1999. Fiscal
year 1999-2000's $10.2 million total reflects a new focus
on endowed professorships spurred in recent years by the
✷✿✿✿ 1 ✸✶✶✶ H i g h l i g h t
The 2000 General Assembly
placed a $3.1 billion higher edu-cation
improvement bond referen-dum
on the November ballot.
Thanks to the generous support of
state voters – more than 70 percent
endorsed the referendum – the
University will receive nearly $500
million in bond money over six
years to help us begin to address
our capital needs.
❉ #
❢✐❢ ❥✇❢ ❇ ✈❜ ❥ ❜ ❞❥❜ ❙❢
✉ ✸✹
state of North Carolina's matching funds provided
through the Distinguished Professors Endowment Trust
Fund.
Capital gifts -- gifts for buildings and long-lived equipment
-- totaled $12.9 million in fiscal year 1999-2000.
Highlights of the year include the rededication of Graham
Memorial as the home of the Johnston Center for
Undergraduate Excellence, a project funded entirely by
private gifts, and the groundbreaking for a new Institute
for Arts and Humanities building, also funded privately.
STUDENT AFFAIRS
Carolina’s efforts to enhance its intellectual climate
extended well outside the classroom and into the Student
Affairs arena. Freshmen and transfer students, for exam-ple,
participated in a new summer reading program to
give them a common basis of discussion. Freshmen also
had the opportunity be part of the new First-Year
Initiative Living-Learning Program. Some 150 students
opted to live in designated housing that featured special
programming to introduce them to the academic and
local communities in small groups led by Faculty
Associates. Feedback from both efforts was overwhelm-ingly
positive.
As the university prepared for an anticipated influx of
new students over the next decade, Student Affairs
focused on where to house them. Planning moved for-ward
for construction of four new low-rise residence
halls, a $42 million project on the southern part of cam-pus,
slated to open in fall 2002.
A step ahead of the residence hall project is the expan-sion
and renovation of the Frank Porter Graham Student
Union. The more than $13 million project, which broke
ground in the spring, will more than double office space
for student organizations by adding 38,000 square feet to
the Union. The existing 80,000-square-foot facility also
will be renovated after the new addition is completed.
Alcohol education continued to be a Student Affairs
focal point. In August we announced the results of a first-in-
the-nation breathalyzer study involving 1,800 UNC-CH
students returning home to both on and off campus stu-dent
housing between 10 pm and 2 am. . The study, con-ducted
by the UNC Highway Safety Research Center,
found that on average nearly three-quarters of students
returning home had no alcohol in their bloodstream –
debunking popular misperceptions of the prevalence of
student drinking. The results were used in a promising
new alcohol intervention technique called social norming,
designed to acquaint new students with actual rates of
alcohol use, since students generally perceive use of alco-hol
to be about 20% higher than it actually is. .
Students also reaped the benefits of the new Counseling
and Psychological Services, part of Student Health
Services. Created by combining the former University
Counseling Center and Student Psychological Services,
the new program offers more efficient one-stop service.
ADMINISTRATION
The University undertook a review of its budget practices
to identify campus-wide priorities and to refine the budg-et
process to reflect these goals. The result is a much
clearer, more understandable and responsive system that
worked well as we planned for the 2000-2001 budget year
and the legislative session for the 2001-2003 biennium.
Business and finance and government relations officials
spent a great deal of time on Carolina’s capital needs.
When the 1999 General Assembly did not reach consen-sus
on a plan to help the state’s public universities and
community colleges finance renovations, repairs and
new construction, the University began to more exten-sively
document our needs and share them with the
public and our legislators. Consultant Eva Klein, hired by
the legislature to review facilities needs for UNC system
campuses, cited some $1.5 billion in capital needs at our
campus alone.
The 2000 General Assembly placed a $3.1 billion higher
education improvement bond referendum on the
November ballot. Thanks to the generous support of state
voters – more than 70 percent endorsed the referendum –
the University will receive nearly $500 million in bond
money over six years to help us begin to address our
capital needs.
As the University considered renovations to its existing
facilities and construction of new ones, we also moved
forward with our campus master-planning effort. The
plan, which will guide future development on the main
campus, is scheduled for presentation to the Board of
Trustees for approval in January 2001. On a related mat-ter,
a special task force continued to explore potential
uses of some 950 undeveloped acres at the Horace
Williams property. Future development of this land will
As a recipient of federal financial
awards, the University is responsi-ble
for ensuring compliance with all
applicable laws and regulations relat-ing
to such assistance. A combination
of State and University policies and
procedures, integrated with the
University’s system of internal con-trols,
provides for this compliance.
✸✺ ✐❢  ❥✇❢
❥✉! ❣ ❖
✉✐ ❉❜
❥ ❜ ❜✉ ❉✐❜ ❢ ❥
play a major role in complementing the core academic
activities on the main campus.
Pedestrian safety on campus became a focus after the
tragic death of a post-doctoral fellow last fall. A commit-tee
chaired by University Police Chief Derek Poarch
worked with representatives from the N.C. Department of
Transportation and the Town of Chapel Hill and others to
identify ways to make the campus safer for pedestrians.
Increased signage, signalized crosswalks and traffic
islands are among the many improvements being imple-mented.
In addition, our Public Safety Department
received a three-year grant to create a squad dedicated to
pedestrian safety. Also, a pedestrian safety committee was
created to continue to monitor this issue and to recom-mend
future steps.
In December, after a three-year examination, the
University successfully concluded a comprehensive audit
by the Internal Revenue Service, part of a broader review
of U.S. universities.
Our Division of Human Resources spent much of the
year preparing and implementing the first phase of a new
human resource information system, which will improve
processing and reporting of information about staff and
faculty. Human Resources also managed significant per-sonnel
changes related to the creation of the UNC Health
Care System. In the past year, some 750 employees were
moved from the University’s payroll to that of the Health
Care System, completing organizational changes
approved by the 1998 General Assembly.
I’m pleased to report that thanks to extraordinary plan-ning
by our Information Technology and Physical Plant
staffs, Carolina smoothly sailed into the year 2000 with no
technical glitches. Our technology staff did an outstand-ing
job negotiating a cost-saving new software licensing
agreement with Microsoft. The agreement is expected to
save the University more than $100,000 per year and ben-efit
at least 10 other UNC system schools.
The University also was delighted with the addition of the
Carolina Inn to the National Register of Historic Places in
recognition of its historic and architectural significance.
ATHLETICS
Our athletic program finished in the top 10 in the annual
Sears Directors’ Cup competition for overall athletic
excellence for the sixth time in seven years. We finished
in fifth place, just a point behind Penn State and 2.5
points ahead of Nebraska.
The Carolina men’s basketball team reached the NCAA
Final Four for the sixth time in the last 10 years. Head
Coach Bill Guthridge also announced his retirement in
late June.
The women’s soccer team won its 16th national champi-onship
in the past 19 years. The Carolina team now has
won 29 national championships.
The Tar Heels also won Atlantic Coast Conference cham-pionships
in women’s soccer, women’s cross country, vol-leyball,
women’s swimming and diving, women’s indoor
track and field, and wrestling. Carolina tied with Duke to
lead the ACC in 1999-2000 with six conference titles each,
marking the 13th successive year we won or tied for the
number of ACC championships. We have won 215 cham-pionships,
more than any other school in the conference.
Our student-athletes also preformed as well in the class-room.
Two hundred and forty were named to the 1999-
2000 ACC Academic Honor Roll for maintaining a grade-point
average of 3.0 for the school year. UNC-CH ranked
second in the number of students on the list.
Financial Information
INTERNAL CONTROL STRUCTURE
The Business and Finance Division of the University is
responsible for establishing and maintaining an effective
system of internal control. The objectives of an internal
control structure are to provide management with reason-able,
although not absolute, assurance that assets are
safeguarded against loss from unauthorized use or dispo-sition,
and that transactions are executed in accordance
with appropriate authorization and recorded properly in
the financial records to permit the preparation of finan-cial
statements in accordance with generally accepted
accounting principles. Accordingly, organizational struc-ture,
policies, and procedures have been established to
safeguard assets, ensure the reliability of accounting data,
promote efficient operations, and ensure compliance with
established governmental laws, regulations and policies,
University policies, and other requirements of sponsors to
whom the University is accountable.
✷✿✿✿ 1 ✸✶✶✶ H i g h l i g h t
Our athletic program finished in the
top 10 in the annual Sears
Directors’ Cup competition for overall
athletic excellence for the sixth time in
seven years. We finished in fifth place,
just a point behind Penn State and 2.5
points ahead of Nebraska.
As a recipient of federal financial awards, the University
is responsible for ensuring compliance with all applicable
laws and regulations relating to such assistance. A com-bination
of State and University policies and procedures,
integrated with the University’s system of internal con-trols,
provides for this compliance. As an integral part of
the State of North Carolina’s Single Audit, the University
undergoes an annual examination by the Office of the
State Auditor of its federal financial assistance programs
in accordance with U. S. Office of Management and
Budget Circular A-133, Audits of State and Local
Governments.
BUDGETARY CONTROLS
The University is responsible for controlling its budget
and using the funds to fulfill its educational and other
missions and also for planning, developing, and control-ling
budgets and expenditures within authorized alloca-tions
and in accordance with University, State, and federal
policies and procedures. The University maintains budg-etary
controls to ensure compliance with provisions
embodied in the annual appropriated budget approved by
the North Carolina General Assembly. Project-length
financial plans are adopted for capital projects.
After the budget has been approved by the Chancellor
and the Board of Governors, the University follows an
established system of budgetary controls. Business and
Finance issues periodic interim budget statements to
department heads to guide them in managing their budg-et
allocations. Monthly financial reports are provided on
each fund to individual managers responsible for the fund.
Financial reports are also provided at the State level.
When actual conditions require changes to the budget,
revisions are prepared, and these revisions are appropri-ately
approved and communicated to those affected.
Changes to the budget are approved at the University
level and/or the State level as required. Based on the
State’s management flexibility legislation, the University
has received delegated authority for designated budget
changes.
The University maintains an encumbrance accounting
system as another method to ensure that imposed expen-diture
constraints are observed.
A quarterly budget status report is presented to the Board
of Trustees. The report compares the revenue and
expenditure budgets with actual activity at a summary
level for the current year and the prior year.
CURRENT FUNDS REVENUES AND
EXPENDITURES
In fiscal 2000, the University expended $1.26 billion ful-filling
its mission of instruction, research, and public serv-ice.
Approximately 55.6% of the total expenditures sup-ported
the instruction and research missions of the
University including the academic and student support
functions. Expenditures for the professional clinical serv-ices
which are self-supporting operations providing med-ical,
dental, and other health care were 12.4% of the total.
Other uses of operating resources were for public service
(7.1%); institutional support (3.8%); plant maintenance
and operations (5.5%); student financial aid (4.0%); and
self-supporting auxiliary and related operations (10.1%).
Mandatory and other transfers, and refunds to grantors
accounted for the remainder (1.5%).
Total expenditures of $1.26 billion represent an increase
of 5.7% over the prior year. Instruction, academic sup-port,
and student services increased 5.9% over the prior
year while organized research increased 6.6%. Other
increases included student financial aid (12.5% increase
over prior year), public service (4.5% increase over prior
year), professional clinical services (17.6% increase over
prior year), auxiliary enterprises / internal service (5.2%
increase), and plant maintenance and operations (6.1%
increase from the prior year), while institutional support
expenditures decreased by 17.1%.
Resources of more than $1.29 billion supporting these
expenditures increased 6.5% over the prior year, which
resulted in a $32.8 million increase to the Current Funds
balances. The University has a diversified revenue base
as the largest single source comprises less than one-third
of the resources generated. State appropriations were the
largest single revenue source for fiscal year 2000 (29.5%
of total, 0.2% increase over prior year). Remaining rev-enue
sources were tuition and fees (9.3% of total, 10.1%
increase), governmental contracts and grants (24.7% of
total, 8.3% increase), sales and services and other sources
(24.9% of total, 10.2% increase), nongovernmental con-tracts
and grants (4.4% of total, 3.8% increase), gifts and
bequests (4.1% of total, 24.1% increase), and investment
and endowment earnings (3.1% of total, 0.4% decrease).
❉ #
❢✐❢ ❥✇❢ ❇ ✈❜ ❥ ❜ ❞❥❜ ❙❢
✉ ✸✻
The student headcount of the
University was 24,635 for the Fall
semester of fiscal 2000. Student
enrollment has remained stable over
the last five years, increasing 0.7%.
✸✼ ✐❢  ❥✇❢
❥✉! ❣ ❖
✉✐ ❉❜
❥ ❜ ❜✉ ❉✐❜ ❢ ❥
CURRENT FUNDS
For the year ended June 30, 2000 (in thousands)
Sources $1,299,438
State Appropriations (29.5%) $383,189
Tuition and Fees (9.3%) $121,507
Governmental Contracts and Grants (24.7%) $321,330
Nongovernmental Contracts and Grants (4.4.%) $56,764
Gifts and Bequests (4.1%) $53,484
Sales and Service and Other Sources (24.9%) $323,435
Investment and Endowment Earnings (3.1%) $39,729
Uses $1,260,647
(40.8%) Instruction, Academic Support,
$514,102 and Student Services
$186,550 (14.8%) Organized Research
$89,906 (7.1%) Public Service
$48,165 (3.8%) Institutional Support
$69,525 (5.5%) Plant Maintenance and Operations
$49,844 (4.0%) Student Financial Aid
$127,443 (10.1%) Auxiliary Enterprises and
Internal Service
$156,522 (12.4%) Professional Clinical Services
$18,590 (1.5%) Transfers and Other Deductions
Resources of proprietary funds, which include auxiliary
enterprise, internal service, and professional clinical serv-ice
activities, totaled $321.4 million. The remaining cur-rent
funds resources of $978.0 million support the educa-tional
and general activities of the University and are
summarized as follows (in thousands):
Educational and General Amount % of Total
State Appropriations $383,189 39.2 %
Tuition and Fees 121,507 12.4 %
Governmental Contracts 321,330 32.9 %
and Grants
Nongovernmental Contracts 56,764 5.8 %
and Grants
Gifts and Bequests 52,335 5.3 %
Sales and Services and Other Sources 11,797 1.2 %
Investment and Endowment Income 31,124 3.2 %
Total $978,046 100.0%
The student headcount of the University was 24,635 for
the Fall semester of fiscal 2000. Student enrollment has
remained stable over the last five years, increasing 0.7%.
Student enrollment for fiscal 2000 was composed of the
following categories:
Women 59.3%
Men 40.7%
White 79.2%
African American 9.8%
Other 11.0%
Undergraduate 62.7%
Graduate 28.5%
Professional 8.8%
Resident 75.3%
Nonresident 24.7%
FUND ACCOUNTING
In order to ensure observance of limitations and restric-tions
placed on the resources available to the University,
the accounts of the university are maintained in accor-dance
with the principles of fund accounting. This is the
procedure by which resources for various purposes are
classified for accounting and reporting purposes into
funds that are in accordance with the activities or objec-tives
specified. Separate accounts are maintained for
each fund; however, in the accompanying comprehensive
✷✿✿✿ 1 ✸✶✶✶ H i g h l i g h t
Fiscal year 1999-2000 produced a
shining example of philanthropy’s
power. Julian and Josie Robertson
gave $24 million to Carolina and
Duke University to establish a pio-neering
new scholarship program in
the two schools.
❉ #
❢✐❢ ❥✇❢ ❇ ✈❜ ❥ ❜ ❞❥❜ ❙❢
✉ ✸✽
annual financial statements, funds that have similar
characteristics have been combined into fund groups.
Accordingly, all financial transactions have been recorded
and reported by fund group. The University’s self-balanc-ing
fund groups are as follows:
Current Funds—include all unrestricted and restricted
resources which are available for the operating purposes
of performing the primary missions of the University.
Current Funds are considered unrestricted unless restric-tions
imposed by the donor or other external agency are
so specific that they substantially reduce the University’s
flexibility in their utilization. Proprietary Funds reflecting
the operations of the student stores, dormitories, and
other auxiliary enterprises and internal service funds are
shown separately from other Unrestricted Funds.
Receipts that are restricted are recorded as additions to
Restricted Fund balances and recognized as revenue to
the extent that such funds are expended for restricted
purposes during the current fiscal year.
Fiduciary Funds—include Loan Funds, Endowment and
Similar Funds, and Agency Funds. Loan Funds include
resources received from donors, governmental agencies,
and mandatory institutional matching grants which are
restricted for use in making student loans. Endowment
and Similar Funds are further categorized as Endowment
Funds, Term Endowment Funds, Quasi-endowment
Funds, and Annuity and Life Income Funds. Endowment
Funds are subject to restrictions of gift instruments
whereby principal is invested and only income is utilized.
Term Endowment Funds are similar to Endowment
Funds, except that all or part of the principal may be
used after a stated period of time or on the occurrence of
a certain event. Quasi-endowment Funds have been
established by the governing board for the same purposes
as Endowment Funds, and any portion of Quasi-endow-ment
funds may be expended. Annuity and Life Income
Funds are received by the University under deferred-giv-ing
agreement contracts that provide income to the donor
and/or the donor’s designee for life or for a fixed period
of time. At the termination of the contracts, the funds
become available for general institutional purposes or for
any restricted purpose designated by the donor in the
contract. Agency Funds are those funds of students and
organizations held by the University as custodian. The
transactions of the Agency Funds do not result in any
revenue or expenditures for the University; therefore,
these funds are not shown in the statement of changes in
fund equity.
Plant Funds—include Unexpended Plant Funds, Debt
Service Funds, and Investment in Plant Funds.
Unexpended Plant Funds account for the resources uti-lized
to finance the acquisition of long-life assets and to
provide for routine renewal and replacement of existing
plant assets. Debt Service Funds account for resources
specifically accumulated for interest and principal pay-ments,
debt service reserve funds, and other debt related
charges. Investment in Plant Funds account for all long-life
assets of the University, construction in progress, and
related debt for funds borrowed and expended for the
acquisition of Plant Fund assets.
DEBT ADMINISTRATION
The University of North Carolina at Chapel Hill has $285
million of revenue bonds outstanding at June 30, 2000.
The bonds were issued to finance the construction
and/or renovation of student housing facilities, student
union facilities, parking facilities, football stadium expan-sion,
dining facilities, student recreation facilities, utilities
systems, ambulatory patient care facilities, hotel facilities,
dental clinic facilities and a facility to be leased to the
United States Environmental Protection Agency. The
bonds are payable both as to principal and interest from
the net revenue generated by the operations of the afore-mentioned
facilities and are consistently rated in the AA
and AAA categories by Standard and Poor’s Corporation.
CASH MANAGEMENT
The cash management plan of the University addresses
control of receipts, management of disbursements, and
investment of funds to maximize earnings on the invest-ment
of cash. State law requires that State appropriated
funds be deposited with the State Treasurer with invest-ment
earnings accruing to the State. Many other current
funds, loan funds, and unexpended plant funds are not
appropriated by the State but must be deposited with the
State Treasurer with investment earnings accruing to the
University. Endowment, debt service, and designated
other funds are invested by the University in accordance
with its investment policies.
The University administers a short-term investment pool
for funds not required to be on deposit with the State
Treasurer. The investment pool is administered in con-junction
with cash receipts and disbursing requirements
to minimize idle cash and to generate current income
without loss of capital at a rate of return comparable to
The Government Finance Officers
Association of the United States
and Canada (GFOA) awarded a
Certificate of Achievement for
Excellence in Financial Reporting to
The University of North Carolina at
Chapel Hill for its comprehensive
annual financial report for the fiscal
year ended June 30, 1999
✸✾ ✐❢  ❥✇❢
❥✉! ❣ ❖
✉✐ ❉❜
❥ ❜ ❜✉ ❉✐❜ ❢ ❥
the North Carolina State Treasurer. The University uses
the State’s cash management control system to improve
cash flow by electronically recording cash receipts and
disbursements for funds deposited with the State
Treasurer.
RISK MANAGEMENT
The University is exposed to various risks of loss related
to property and employees. These risks are addressed in
several ways, including participation in various State-administered
risk pools, purchase of commercial insur-ance,
and self retention of certain risks. Refer to Note 12
of the Notes to the Financial Statements for more
detailed information concerning the University’s risk man-agement
program.
Other Information
AUDITS
State law, federal guidelines, and certain bond covenants
require that the University’s accounting and financial
records be audited by the Office of the State Auditor each
year. Additionally, the University’s Internal Auditors per-form
fiscal, compliance and performance audits. The
reports resulting from these audits are shared with
University management.
The audit of the University’s federal financial assistance
programs is performed by the Office of the State Auditor
in conjunction with the statewide Single Audit. The
accounting and financial records of The University of
North Carolina at Chapel Hill Foundation, Inc. and of the
Athletic Department are each audited by a public
accoun